Roadmap entities Flashcards
Who is the infrastructure planner and what is their role?
Energy Co
Summary: - The Infrastructure Planner is EnergyCo. As infrastructure planner, EnergyCo will coordinate where the generation, long duration storage and firming capacity will be built. They will contract and oversee suppliers delivering the transmission network infrastructure required to connect the generation built in REZs to the electricity grid.
LONGER VERSION
Purpose: to lead, design coordination and delivery of REZs and priority transmission infrastructure in a way that benefits consumers, investors and regional communities. In short, EnergyCo is the ‘infrastructure planner’.
Functions
o Coordinate $32 billion of investment in REZs to deliver at least 12 GW of renewables by 2030
o Lead the declaration, coordination and delivery of the State’s first five REZs in NSW and priority transmission infrastructure projects
o Design and deliver transmission network infrastructure projects for REZs
o Work with communities, industry and other stakeholders to maintain community support and maximise benefits for regional communities.
What are EnergyCo’s priority transmission projects?
Waratah Super Battery Project (key purpose is around transmission even though it’s a battery)
Hunter Transmission Project (or Northern Sydney Ring Project)
What are the key entities and their roles of the Roadmap?
Who is the consumer trustee and what is their role?
- The Consumer Trustee is AEMO Services Ltd
The Consumer Trustee’s purpose is to act
independently and in the long term financial interests
of NSW electricity customers to improve the
affordability, reliability, security and sustainability of
electricity supply. It does this through long term
planning and well structured procurement processes (tenders)
o Consumer Trustee authorises network infrastructure projects and administers tenders to identify generation, firming and storage projects to offer Long Term Energy Service Agreements.
o Appoints a Financial Trustee to administer the Scheme Financial Vehicle.
A “scheme financial vehicle” is required to establish an electricity infrastructure fund and provide the money that may be paid into and from the fund to support the approved network investments.
Distribution network service providers will be required to pay contributions into the fund.
From AER site
The Contribution determination guideline (the Guideline) addresses cost recovery under the NSW Electricity Infrastructure Roadmap (the Roadmap).
Under the NSW Electricity Infrastructure Investment Act 2020 (EII Act) we are required to make an annual contribution determination to confirm the costs of implementing the Roadmap. The Roadmap’s independent Scheme Financial Vehicle recovers these costs from the NSW distribution network service providers who are then required to pass the costs through to NSW electricity consumers. In the National Electricity Rules context, the Roadmap’s contribution determination is a jurisdictional scheme, and meets the eligibility criteria in the NER as assessed by the AER.
The contribution determination process allows the Scheme Financial Vehicle to have sufficient funds to meet its liabilities, for example to cover the costs of underwriting new renewable generation or storage investment, network investment and the administration costs of Roadmap entities.
To give effect to our regulatory functions under the EII Act, the Guideline sets out our process and method for making a contribution determination. Our method will be operationalised through the contribution determination template.
The Guideline implements the EII Act and Regulations developed by the NSW Office of Energy and Climate Change (OECC). The OECC published its policy intent on exemptions from Roadmap costs for emissions-intensive trade-exposed entities and green hydrogen producers and its proposed process for administering exemptions which should be read in conjunction with this Guideline.
Summary on Scheme Financial Veihcle
- Consumer Trustee appoints Scheme Financial Vehicle. Scheme Financial Vehicle recovers contributions from network service providers, who pay because their business is benefited from the public investment into network infrastructure. This money is then reinvested into renewable infrastructure under the Roadmap.
Which groups are represented on the sector board and what is their role?
- Renewable Energy Sector Board
o The Board has representatives from unions, the steel, electricity and manufacturing sectors, the renewable energy industry, and electricity customers and held its first meeting on 5 March 2021.
o The Board has developed a plan for the NSW renewable energy sector to achieve objectives in relation to the construction of generation, storage and network infrastructure in a cost effective way. These objectives include:
the use of locally produced and supplied goods and services
employment of suitable qualified local workers
opportunities for apprentices and trainees.
STANDARD WORDS
The Minister for Energy established the NSW Renewable Energy Sector Board in February 2021, under the Electricity Infrastructure Investment Act 2020 (the Act). The Act is the enabling legislation for the NSW Electricity Infrastructure Roadmap, the NSW Government’s plan to transform our electricity system into one that is cheap, clean and reliable.
The Board has representation from a broad range of stakeholders, including trade unions, the steel, metals fabrication, electricity, manufacturing and construction sectors, the renewable energy industry, NSW electricity customers and the Energy Corporation of NSW (EnergyCo).
The Board has prepared a plan for the NSW renewable energy sector which sets out how to cost-effectively maximise the use of locally produced and supplied goods and services, employment of suitable qualified local workers and opportunities for apprentices and trainees in the construction and operation of infrastructure under the Roadmap.
The plan provides guidance on how to set eligibility and merit criteria for the use of local content and workers in generation, storage and network infrastructure projects under the Roadmap.
The Act requires the Minister and the Consumer Trustee to take the Board’s plan into account when exercising their functions under the Act.
AEMO Services, as the NSW Consumer Trustee, has incorporated the Board’s recommended minimum requirements and stretch goals for local content into the inaugural tender for energy generation and long-duration storage under the Roadmap.
EnergyCo has also incorporated these minimum requirements and stretch goals in the tender for the Central West Orana (CWO) Renewable Energy Zone (REZ) network and the competitive procurement process for the development of the Waratah Super Battery.
What are the names/titles of people on the Renewable Energy Sector Board?
Daniel Walton, National Secretary, Australian Workers’ Union (CHAIR OF SECTOR BOARD)
- Walk up to Robyn’s door. AWU is imprinted in the garden with a lion sitting in a ‘chair’.
Craig Memery, Director, Energy & Water Consumers Advocacy Program, Public Interest Advocacy Centre (CHAIR OF SECTOR BOARD)
- I look to the front door and there is a brain sitting in another chair.
Mark Cain, Chief Executive, Australian Steel Institute
- I open the door and walk in. I look to the right and there is Mark from the Singers show with a steel cain.
John Coyle, Director, Varley Group (Nominee of Aus Industry Group)
- I head into Robyn’s room and someone is singing Johnny be good with a ‘V’ shaped guitar.
https://www.varleygroup.com/site/leadership
Matt Robertson, National Strategy & Market Development Manager, BlueScope Steel
- I walk into rob’s bathroom and the bathtub is blue.
Trevor Gault, National Policy Officer, Electrical Trades Union Communications Electrical Plumbing Union
Then Trevor Lightfoot comes out and puts some wires in the bathtub.
https://www.etunational.asn.au/about-etu/national-team/
Cory Wright, State Secretary, Australian Manufacturing Workers’ Union
I walk into the laundry and there is a giant pencil being manufactured. Cory is on top of the pencil riding it like a horse.
https://www.amwu.org.au/our_people
Grahame Kelly, General Secretary, CFMEU (Mining and Energy Division)
I walk into the hallway and Graham from Church is meeting with Ned Kelly.
Anita Talberg, Director - Workforce Development, Clean Energy Council
- I walk into the kitchen and I a giant wind towers.
https://www.cleanenergycouncil.org.au/about/our-team
James Hay, Chief Executive, Energy Corporation of NSW
- I go sit on the coach and James Hay is on the TV talking to us.
https://www.google.com/search?rlz=1C1GCEU_en-gbAU1035AU1035&sxsrf=ALiCzsYNtdrbu-8xLB5AmvY7MvPHveMtdg:1671573508028&q=James+Hay,+energyCo&tbm=isch&sa=X&ved=2ahUKEwi2wKXJmIn8AhWf0XMBHYeMBvAQ0pQJegQICxAB&biw=1266&bih=641&dpr=1.5#imgrc=vfCgZAliaVh8rM
Rod Stowe, former NSW Fair Trading Commissioner
- I head out into the garden and Rob Stowe hands me a giant fair trade chocolate
https://www.abc.net.au/news/2014-07-07/rod-stowe-sacked-as-fair-trading-commissioner/5575838
Brian Salter, Executive Manager, Legal Governance and Risk, Transgrid
- Then in the middle of the garden, there is a giant salt shaker, which is also a high voltage transmission tower.
What is the role of the jobs advocate
o Jobs advocate advises Minister on strategies to encourage investment, development, workforce development, employment, education and training in the energy sector as New South Wales transitions to renewable energy in REZs.
o Road, rail and port infrastructure required in the REZs to promote export opportunities for generation, storage and network technology.
STANDARD WORDS
The Minister for Energy appointed Dr Mark Apthorpe as the first Electricity Infrastructure Jobs Advocate in February 2022. Dr Apthorpe commenced in the role in March 2022.
Dr Apthorpe’s role is to advise the Minister on strategies and incentives to encourage investment, development, workforce development, employment and education and training opportunities in the energy sector.
Dr Apthorpe has a particular focus on the Hunter, Central Coast, Illawarra, Far West, South-West, New England and the Central West regions of NSW.
He also provides advice on road, rail and port infrastructure required in those regions to promote export opportunities for generation, storage and network technology.
Dr Apthorpe provided his first report to the Minister in June 2022. The report outlines the Jobs Advocate’s early findings on employment, training and workforce development in NSW’s renewable energy zones and infrastructure to promote export opportunities for generation, storage and network technology. The report also sets out the Jobs Advocate’s priorities over the coming year and suggests areas for further NSW Government consideration.
What is the role of the Energy Security Target monitor?
- Energy Security Target Monitor has been appointed as AEMO
o Under the appointment, AEMO is responsible for calculating and setting a 10 year energy security target for NSW. This target is designed to provide market certainty as it ensures that there will be reliable supplies of electricity available to meet electricity demands over the medium term.
Who is the Regulator and what is their role?
- The Regular is IPART and AER.
AER focuses on:
o The regulator determines the amount payable to network operators for network infrastructure projects.
o approving a risk management framework developed by the Consumer Trustee
o reviewing tender rules for Long-term energy service agreements
IPART is the regulator specifically for the purpose of the Board’s plan, and they also have an annual reporting function under the Act.
The regulatory role that the AER plays under the Roadmap mirrors/is similar to the role that they play for the rest of the NEM, e.g. making revenue determinations for network infrastructure projects and contribution determinations.
IPART, on the other hand, is a NSW regulator focused on economic/pricing regulation and consumer protection. This makes them the appropriate regulator for the Board’s plan (which the regulator has to assess on the basis that it protects the financial interests of NSW electricity customers and is consistent with Australia’s international trade obligations). I think this is why they also do the annual reporting function (and because they are NSW-specific).
What is role of Scheme Financial Vehicle
Established to intermediate cash flows between
proponents undertaking legislated activities in the
NSW energy sector and the NSW DNSPs. This
includes entering LTESAs, risk management
contracts, and establishing and maintaining the
Electricity Infrastructure Fund for the purposes of the
EII Act.
Overview of the names of those involved in implementing the roadmap
- Infrastructure Planner, Energy Co
- Consumer Trustee, AEMO Services
- Scheme Financial Vehicle
- Policy and Governance (Office of Energy and Climate Change
- Regulators including Independent Pricing and Regulatory Tribunal and Australian Energy Regulator
- Investors, Network (operators?), Developers - provides private investment and deliver the generation, storage and transmission infrastructure to meet the objectives of the Roadmap
Role of OECC in implementing the Roadmap
Oversees the governance of Roadmap entities and advises the
Minister for Energy on policy matters and statutory functions.
Role of the two regulators in implementing the Roadmap
Australian Energy Regular - Undertakes a number of statutory functions under the EII Act including determining the amount payable to network operators for network
infrastructure projects.
Independent Pricing and Regulatory Tribunal - Prepares annual report on the exercise of functions under the EII Act and undertakes performance audits on the entities delivering the Roadmap
Role of investors, networks and developers in implementing the Roadmap
Provides private investment and delivers the generation, storage and transmission infrastructure to meet the objectives of the Roadmap.
