The Peak Demand Reduction Scheme (PDRS) was established in September 2021 to reduce peak electricity demand and pressure on the electricity system in NSW. Reducing peak demand minimises the risk of blackouts or price spikes during hot summer days when electricity usage and demand is at its peak. The PDRS is one of the schemes in the NSW Energy Security Safeguard (see the Energy website for more information about the Safeguard). It will commence on 1 November 2022.
The PDRS will provide financial incentives for households and businesses to implement activities that reduce demand for electricity during peak times. These incentives are passed on to households and businesses by Accredited Certificate Providers (ACPs) that create a Peak Reduction Certificate (PRC) from the activity.
In addition to reducing peak demand, the PDRS can help:
- NSW achieve its net zero emissions target
- ensure we have a safe and reliable electricity system
- households and businesses in NSW save money on their electricity bills.
The PDRS will start by providing incentives to install more efficient appliances that use less electricity during peak times like:
- air conditioners
- refrigerated cabinets
- heat pump hot water systems
- residential pool pumps
- motors for ventilation or refrigeration.
PRCs can be registered from 1 November 2022 when the PDRS registry commences operation.
In the future, the scheme will be expanded to include other activities that:
- shift electricity use from peak times, or
- provide a demand response – that is, active control of appliances during peak times to reduce demand on the electricity network.