How the schemes work
About the Safeguard schemes
The Energy Security Safeguard (Safeguard) is a policy initiative by the NSW Government. It includes several schemes to support a more reliable, affordable and sustainable energy system:
- Energy Savings Scheme (ESS)
- Peak Demand Reduction Scheme (PDRS)
- Renewable Fuel Scheme (RFS).
Energy Savings Scheme
The ESS is a certificate scheme that encourages NSW consumers to reduce their energy use. It creates financial incentives for consumers to install or upgrade to energy-efficient equipment in their homes or businesses.
The ESS works by creating a market for energy savings certificates (ESCs):
- consumers receive a discount from ACPs to implement approved energy activities in their home or business
- ACPs use the energy savings from these activities to create and sell ESCs
- scheme participants acquire ESCs and surrender them to meet their targets.
IPART administers and regulates the scheme.
Learn more on the ESS page.
Peak Demand Reduction Scheme
The PDRS is a certificate scheme that creates financial incentives to help reduce electricity demand during peak periods in NSW. It encourages activities that help to reduce peak demand in households and businesses.
This includes:
- installing air conditioners
- installing large heat pump water heaters
- connecting a battery to a virtual power plant.
The PDRS works by creating a market for Peak Demand Reduction Certificates (PRCs):
- consumers receive a discount from ACPs to implement approved peak reduction activities in their home or business
- ACPs use the peak demand reductions to create and sell PRCs
- scheme participants acquire PRCs and surrender them to meet their targets.
IPART administers and regulates the scheme.
Learn more on the PDRS page.
Renewable Fuel Scheme
The RFS is a certificate scheme that will create incentives for green hydrogen production in NSW.
Hydrogen producers will be able to create certificates based on the amount of green hydrogen they produce and sell them to liable parties. Each certificate will represent 1 GJ of green hydrogen produced.
IPART will administer and regulate the RFS.
The Renewable Fuel Scheme page has more information on the RFS.
Learn more on the RFS page.