NEW SOUTH WALES

NSW Government Energy Savings Scheme (ESS)

The NSW Energy Savings Scheme (ESS) provides financial incentives to install, improve or replace energy savings equipment and appliances in NSW households and businesses. The ESS was established in 2009 under the Electricity Supply Act 1995 (the Act).

 

Financial incentives are in the form of tradeable certificates, called energy savings certificates (ESCs). Generally, householders and businesses who fund energy savings activities transfer the right to create ESCs to Accredited Certificate Providers (ACPs) in return for a discount on the cost of the energy savings activity. The notional megawatt hours attributed to energy savings activities determines the number of ESCs that can be created.

The ESS works by allowing ACPs to create and register ESCs for energy savings that are supported with appropriate evidence. ESCs are then purchased each year by mainly electricity retailers operating in NSW to meet their share of a legislated annual energy savings target. This creates a market for certificates (ie, demand).

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