NSW opens $1 billion green bank for business, Eraring inquiry head appointed chair

The Energy Security Corporation, the newly created “green bank” for the New South Wales state government, is now open for business, with $1 billion of seed funding and a new board and chair.

The ESC is to focus on investment gaps for the transition away from coal, particularly in relation to long duration storage options in batteries and pumped hydro, and for other energy infrastructure and virtual power plants.

The NSW government on Tuesday announced that Cameron O’Reilly, who led the Electricity Supply and Reliability Check Up in 2023 that examined whether the state could or should allow the Eraring coal generator to close this year (its closure was delayed for at least two years) as inaugural chair of the board.

He will be joined by newly appointed directors David Borger, Helen Conway, Michael Cummings, Sharon Eacott, Katerina Kimmorley, and Daniel Papps. Paul Peters was announced as CEO in February.

The ESC was subsequently established in June 2024 under the Energy Security Corporation Act 2024 with the goal of accelerating private sector investments in projects which improve the reliability, security, and sustainability of electricity supply.

“The ESC has a vital role to play in NSW’s energy transformation,” O’Reilly said in a statement.

“I look forward to working with my fellow Board members and the executive team to make strategic investment decisions that support the state’s clean energy future and deliver long-term value for the people of NSW.”

The NSW Labor government has long lamented the fact that the ownership of the state’s generators has passed into private hands, which forced it into negotiations with the Eraring owner Origin Energy over the timing of the closure of the country’s biggest coal generator, and the terms of the underwriting agreement.

“After a decade of privatisation, the Energy Security Corporation gives the people of NSW the chance to invest in their energy system, and we’re thrilled to appoint a Board to accelerate this process,” said Penny Sharpe, state minister for climate change and energy.

“The corporation will collaborate with the private sector to plug investment gaps, ensuring we keep the lights on and prices down for NSW residents and businesses.” 

Peters said the ESC will provide “flexible capital” needed to accelerate infrastructure projects and to create a modern, resilient energy system. “We’ve already been out engaging with energy companies, developers and financiers, building an understanding of where the ESC can maximise its impact,” he said.