Peak Demand Reduction Scheme Rule change 2 consultation paper

Abstract

The Peak Demand Reduction Scheme (PDRS) is a certificate scheme which aims to reduce electricity demand during peak hours in NSW. The PDRS started in the summer of 2022-23. The primary objective of the PDRS is to create a financial incentive to reduce peak electricity demand by encouraging activities that will reduce demand during peak hours. Reducing peak demand improves the reliability and resilience of the energy system, while also improving affordability. The Energy Security Safeguard (the Safeguard) consists of 3 schemes. Aside from the PDRS, there is also: • the Energy Savings Scheme, which provides financial incentives to install energy efficient equipment and appliances • the Renewable Fuel Scheme, which will encourage the production of green hydrogen in NSW. The Safeguard aims to help ensure the NSW energy system is more reliable, affordable, and sustainable. It supports the transition to a renewable energy system in NSW and helps to achieve the emissions reduction target of net zero by 2050.