By: Paul Peters, CEO, Energy Security Corporation
The New South Wales energy transition is well underway, driven by strong ambition and a clear Roadmap. What’s needed now is greater velocity - accelerated funding, faster approvals and construction which matches the urgent need for a reliable, flexible and efficient power grid.
Over the next 10 years, 3 of New South Wales’ 4 remaining coal-fired power stations are scheduled to retire, with renewables set to dominate supply generation moving forward. To fill the reliability gap this creates, we need targeted and timely investment in large-scale storage and firming and network assets - at a pace and scale beyond what the market can deliver on its own.
This is the mission of the newly formed Energy Security Corporation (ESC), backed with $1 billion in seed capital and a clear focus on accelerating New South Wales’ energy transformation. Our role is to step in where the market isn’t moving fast enough, can’t do it alone, or there are specific project financing gaps.
Because we don’t just need a transition. We need one at speed. With coal exiting the system faster than anticipated, the pressure to maintain reliability and security is growing.
And in New South Wales - like most jurisdictions - the priorities are clear: more storage, longer duration storage, orchestrated consumer energy resources, and building a smarter, flexible grid.
The ESC was designed to help close funding gaps, including financing early works to delivery and deploying catalytic capital to help move critical projects forward.
This includes investing in upgrading existing network infrastructure and platforms that accelerate the rollout and orchestration of consumer energy resources, the kinds of projects which allow us to move quickly, maximise the capacity of the existing system and address reliability gaps while larger, long-lead infrastructure is still being delivered.
Our role is to say yes, where others hesitate.
At the ESC, our goal is to co-invest, to move early, and to create the momentum which attracts others.
The common thread? Getting projects from potential to delivery, faster.
Delivery is the differentiator
It’s easy to be captivated by scale. And while big projects are essential to Australia’s energy future, what the system needs most right now are the right projects, delivered at the right time, in the right place, to meet today’s electricity needs and build long-term resilience.
If firming and storage projects aren’t delivered in time, we risk a reliability crunch, with the spectre of blackouts and power shortages.
Timely coordination and certainty are key to keeping projects on track.
That’s why the ESC is working closely with key government agencies, directing investment into the infrastructure needed for a secure, reliable electricity system.
Without it, we risk slippage that could impact system reliability, energy affordability, and the pace of decarbonisation.
As more homes, vehicles, industries shift to electric, new data centres require significant firmed electricity, and as New South Wales’ population grows, total energy demand will only rise. This means pressure on the grid is increasing, not easing. We won’t meet the demand with generation alone. We’ll need firming, flexibility and fast-acting assets that can back up renewables, smooth volatility, and hold the grid steady when it matters most.
The energy transition is a systems challenge, with high stakes and tight timelines. To meet that challenge, we’ll need tools that are fit for purpose: designed to move fast, act decisively and stay focused on outcomes.
Our tools are flexible investment instruments, including debt, equity, and hybrid options, with concessional finance - to help absorb risk, stretch time horizons, and structure deals which can unlock projects. They work alongside commercial capital, not instead of it, enabling infrastructure that’s technically viable but commercially stuck.
Think of us as the first or last dollar in a deal. We have a high-risk appetite, although we must make a small return on the capital we invest. We are commercially rigorous but act nimbly and decisively.
There is much to do and we’re working with urgency, because the challenge is not just building a new system, it’s doing so at speed and scale, while maintaining reliability.