The New South Wales government has unveiled its Energy Security Corporation, a state-owned green bank with AU$1 billion (US$640 million) in funding, aimed at accelerating investment in renewable energy storage solutions. The new entity will focus on large-scale battery energy storage systems (BESS), community batteries, pumped hydro energy storage (PHES), and virtual power plants (VPPs) to enhance the use of solar PV and wind-generated electricity.

The initiative marks a strategic shift from energy asset privatisation, according to New South Wales Minister for Energy, Penny Sharpe, who stated, “New South Wales will invest AU$1 billion in critical projects to deliver more affordable, clean, and reliable energy.”

The Investment Mandate includes upgrading infrastructure to ensure smooth grid operations, coordinating consumer energy resources, and boosting community energy solutions. Community batteries, in particular, are expected to support residential decarbonisation and increase the adoption of renewable energy. Ausgrid has already launched a community battery in Cammeray, Sydney, with more to come through its Energy Storage-as-a-Service (ESaaS) model in partnership with Origin Energy and EnergyAustralia.

The Energy Security Corporation also supports large-scale pumped hydro projects, including the Stratford Pumped Hydro and Solar project, Muswellbrook, and Lake Lyell sites, which are deemed “critical” for New South Wales’ energy transition. These projects aim to enhance grid reliability and support the state’s decarbonisation goals.

Paul Peters has been appointed as interim CEO of the new corporation, with the inaugural board expected to be announced soon.