Access schemes and rights explained

Access schemes set a limit on the amount of renewable generation and storage projects that can connect to certain power lines in a renewable energy zone. They help coordinate and encourage renewable energy and storage investment in renewable energy zones (REZs).  

An access scheme enables efficient investment in generation, storage and transmission infrastructure in the long-term interest of consumers.  

Generation and storage projects like wind farms, solar farms and batteries need an access right to connect to the power lines captured by an access scheme in a REZ. Access schemes lay out the conditions for project developers to get access rights.

So far, the Central-West Orana REZ and South West REZ have access schemes and have awarded access rights to projects. An access scheme for the New England REZ is currently under consideration.

Declaring and designing access schemes

The Minister for Energy can declare access schemes for renewable energy zones. The terms and conditions for declaring an access scheme are set out in the Guidelines for Access Scheme Declarations.  

We at EnergyCo design and manage network access schemes to help select generation and storage projects to connect based on their merits. In the design process, we consult with communities, investors, operators and regulators to ensure that it will deliver benefits.

The rules that govern the electricity market are complex and highly regulated. They are important to make sure homes and businesses have a reliable and affordable energy supply. The Australian National Electricity Market (NEM) operates under an ‘open access regime’, meaning that any generator that meets certain criteria can connect to the grid regardless of whether this creates network congestion or is needed by the system.

In REZs, the NSW Government has the ability to apply an access scheme to manage generator access to the network. Access schemes help to make the most out of the network by managing the amount of generation capacity and coordinating which generation and storage projects can connect. 

Access Schemes also support investment certainty for generation and storage projects and encourage development in areas that support the grid into the future.

Managing generation and storage capacity

There are two ways an access scheme can manage generation and storage capacity:

• through an access rights regime which requires projects to gain rights to connect to the part of a network where the access rights regime applies (called an access rights network).
• through an access control mechanism which requires a project to seek EnergyCo’s consent to connect to the part of a network where an access control mechanism applies (called an access control network). 

In both cases, projects need to get permission to connect to a network. An access scheme outlines the type of permission and requirements a generator needs to meet to connect to a network.

Learn about generation and storage projects

Access rights

Generation and storage projects will need to apply for an access right under an access scheme to connect to an access rights network. 

Access rights decide:

• if the project can connect to the network
• the maximum amount of electricity the project can send to the network at one time.

Benefits of access schemes

Access schemes make sure the network operates in the best interest of consumers and REZ communities. 

They do this by:

• encouraging investment providing clear rules and incentives for renewable energy projects to develop and connect to the grid
• preventing overload making sure we have enough electricity flowing consistently to keep the lights on without overloading the grid
• making sure the best projects connect running a competitive process to make sure the best projects on merit get to connect and supply energy to the grid
• improving community outcomes collecting fees from the access rights holders which are invested in improving local community, First Nations and
  employment outcomes. 

An access scheme competitive process will prioritise the best quality projects on technical, environmental, economic and social merit, not just the projects that are quickest to develop. 

Access rights and community benefits

Projects that are awarded access rights will pay yearly access fees which will contribute to funding for community and employment benefits.

The Community and Employment Benefit Program will support the long-term prosperity of regional NSW by funding community-led initiatives, public infrastructure and First Nations projects.

The program will continue for many years after the renewable energy zones are delivered. It will invest hundreds of millions of dollars into regional communities to ensure they receive lasting benefits.