Legal development

LTESA consultation paper released as part of the NSW Electricity Infrastructure Roadmap

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    What you need to know:

    The NSW Government has released a consultation paper outlining proposed design concepts and structural elements of LTESAs for eligible generation, long duration storage and firming projects.

    LTESAs are a central element of the NSW Electricity Infrastructure Roadmap, and allow renewable generators to sell their energy at an agreed minimum price to a Scheme Financial Vehicle set up by the NSW Government. 

    The idea is to de-risk renewable energy projects by providing investors with long-term revenue certainty and protection against low wholesale electricity prices. The LTESAs will take the form of options contracts, with periodic options to exercise derivative arrangements.

    A copy of the consultation paper can be found here.

    What you need to do:

    Stakeholders need to complete the Submission Form (a link to the form is provided in the consultation paper) and submit the form via email to Electricity.Roadmap@dpie.nsw.gov.au.

    The questions being asked in the Submissions Form can be found at the end of sections 4 and 5 of the consultation paper. Submissions are due at 5pm on 10 September 2021.

    Authors: Paul Curnow, Partner and Andre Dauwalder, Senior Associate.

    The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
    Readers should take legal advice before applying it to specific issues or transactions.