The Australian Energy Regulator (AER) has decided to review and remake the Paired Generation Service and System Integrity Protection Scheme (SIPS) Battery Service revenue determinations relating to the Waratah Super Battery (WSB) project following a proposal from the Network Operator, Transgrid.
Our decision to remake the revenue determinations ensures they reflect recent amendments to the contractual arrangements. The remade revenue determinations include an extension of the project term and a corresponding extension of the schedule of payments, as well as new and amended revenue adjustment mechanisms. The changes made to the determinations allow the battery to be operated more dynamically – allowing it to trade in the energy market while still supporting energy security requirements. Any revenue earned from energy trading is shared with consumers, reducing future service charges and lowering the total cost of the battery.
Our assessment of the Network Operator’s proposal and our final decision is consistent with our obligations set out in the Electricity Infrastructure Investment Act 2020 (NSW) (EII Act), the Electricity Infrastructure Investment Regulation 2021 (NSW) (EII Regulation) and our Revenue determination guideline for NSW contestable network projects.
In making our decision, we considered the changes:
- are consistent with the Minister’s direction,
- are consistent with the outcome of the initial competitive assessment process, and
- result in consumers receiving the benefits of the project.
Consistent with the AER’s previous decisions on the contestable components of the WSB project, the AER intends to publish the adjusted schedule of payments as an aggregated figure separately on its website around June 2027. The schedule of payments published next year will include any annual revenue adjustments that occur before then, including any revenue adjustment for the delay in the battery reaching commercial operation.
Consistent with the requirements of the EII Regulation, we have published a summary report on these remade revenue determinations. The report provides more context and information on the remade revenue determinations.
Background
On 14 October 2022, the NSW Minister for Energy directed Transgrid as the network operator to carry out the WSB project, which is classified as a Priority Network Infrastructure Project under the NSW EII framework.
The WSB project aims to increase power transfer capacity on transmission lines that connect generation in the northern and southern regions of NSW to the Sydney, Newcastle and Wollongong region.
The WSB project has four components. We made our initial revenue determinations on the Paired Generation Service component and SIPS Battery Service component in March 2024 and December 2022, respectively.
On 24 August 2026, Transgrid submitted to the AER a proposal to review and remake the Paired Generation Service and SIPS Battery Service revenue determinations to reflect the amended contractual arrangements. Once the AER receives a compliant proposal it endeavours to make its decision within 42 business days.
The AER has now remade these two revenue determinations to include the amended contractual arrangements along with some minor administrative amendments.