NSW ramps up energy efficiency targets in quest to save $2.4bn in energy costs

The NSW government has significantly ramped up energy efficiency targets under the state’s Energy Saving Scheme, that it says could deliver $2.4 billion in reduced energy costs for businesses and households.

NSW energy minister Matt Kean announced on Wednesday that the state government would increase the state’s energy saving target from 8.5 per cent to 13 per cent by 2030, which will require electricity retailers to invest in more energy efficiency measures.

Under the Energy Savings Scheme, electricity retailers are required to meet the energy saving targets by supporting the replacement of appliances with energy efficient alternatives, including light bulbs, air conditioning and heating systems.

“Since 2009 the ESS has supported the roll-out of projects that, over their lifetimes, will deliver about 32,500 gigawatt hours of energy savings and more than $6 billion in bill savings for consumers,” Kean said on Wednesday.

“Raising the annual energy saving targets from the current 8.5 per cent to 13 per cent by 2030 will ramp up those savings – injecting an additional $1 billion into the State’s economy and delivering a $2.4 billion boost to bill savings.”

The NSW government expects the increased investments in energy efficiency measures would support as many as 1,600 jobs across New South Wales.

“Increased targets will mean more opportunities for the hundreds of small businesses that install energy savings services across the State,” Kean added.

According to NSW government figures, a household replacing 20 halogen downlights with LED alternatives could save as much as $210 per year on energy costs, and be eligible for support under the Energy Saving Scheme.

A medium sized business making upgrades upgrades to lighting, and the heating, ventilating and air conditioning systems could also save as much as $290,000 per year.

Kean had previously flagged an expansion of the state’s Energy Saving Scheme as part of a wider NSW Electricity Strategy in 2019, which first proposed the creation of dedicated renewable energy zones in the state.

To benefit from the program, energy consumers are encouraged to engage with ‘Accredited Certificate Providers’, which are able to advice on eligible measures as well as claim the financial benefits available through the issue of Energy Saving Certificates, which can be sold on to electricity retailers.