Introduction
The NSW Electricity Infrastructure Roadmap (the Roadmap) is a plan to transform our electricity system into one that is affordable, clean and reliable for everyone. It will transition the electricity network to one that will keep the lights on and our bills more affordable for years to come.
To realise these opportunities, the Government established the NSW Renewable Energy Sector Board (the Board) to make sure local workers, communities, and industries share in the economic benefits of the transition to a more affordable, clean and reliable electricity system.
Investments in developing local supply chains to support delivery of the energy transition are hindered by a causality dilemma, whereby:
- without a clear signal to invest, local supply chains will not develop and expand; and
- without a clear incentive to change, renewable energy developers will continue using their existing supply chains.
The Board's proposed approach to address this problem is to increase local content requirements (LCR) in Roadmap projects over time, as recommended in our Plan. This will provide greater certainty to local suppliers of future demand, enabling them to invest in new or expanded local facilities.
The process to increase LCR
The process assesses whether proposals to increase LCR lodged by potential suppliers are cost-effective, protect the financial interests of electricity customers and are consistent with Australia’s international trade obligations.
The process will comprise two stages as follows:
- Stage 1: Preliminary assessment. The first stage allows proponents to submit a short, high-level proposal outlining key elements of their project (for investment in new or expanded manufacturing facilities) for consideration by the Board.
- Stage 2: Detailed assessment. The second stage requires a thorough, detailed project proposal that clearly outlines how the project addresses all assessment criteria.