Overview of the Final Report
The NSW electricity system is changing rapidly as more renewable generation and storage projects connect to the network. These projects are typically connected through assets known as supply connection infrastructure.
Following consultation on our Options Paper, we have now released our Final Report. The report sets out our analysis, findings and recommendations for the NSW Government’s consideration on how this infrastructure should be regulated. It builds on the analysis in our Options Paper and reflects the feedback we received from stakeholders.
Our findings
We found that NSW has no regulatory framework designed specifically for supply connection infrastructure. Where this infrastructure is run by a licensed network operator, it is covered by existing rules – but only because of who operates it, not because the infrastructure itself is regulated. A growing share of it is now operated by private unlicensed operators.
These operators fall outside much of the existing NSW electricity regulatory framework. There is no register of who they are, no routine reporting to IPART, and no consistent set of safety and bushfire obligations that apply to them. This creates a visibility gap and means safety and bushfire coverage across supply connection infrastructure in NSW is uneven.
Our recommendations
We made several recommendations for the NSW Government to consider.
Our main recommendation is a proportionate, safety-based framework that treats the operators consistently. This would mean applying safety and bushfire obligations scaled to the risks involved, without requiring them to hold a licence.
Under the framework, operators would need to manage safety and bushfire risks, register with a regulator, and report serious incidents to IPART. IPART would monitor and enforce the framework using its existing tools. The framework would apply to both existing and new operators and assets, supported by transitional arrangements.
We also recommend the NSW Government review the framework within five years. As the sector grows and changes, this would allow it to consider whether other risks should be brought in over time.