Financial trustee appointed for NSW Electricity Infrastructure Roadmap

Wind farm at sunset with transmission towers in the background (aemo report)
Image: Lucy Nicholson/Reuters

AEMO Services has appointed Equity Trustees as Financial Trustee under the NSW Electricity Infrastructure Roadmap.

AEMO Services is an independent subsidiary of the Australian Energy Market Operator (AEMO) and is a key partner in the implementation of the NSW Government’s Electricity Infrastructure Roadmap through its appointment as the NSW Consumer Trustee.

Related article: NSW opens tenders for large-scale renewables

The roadmap works towards legislated targets of at least 12GW of new renewable generation and at least 2GW of new long-duration storage by 2030. Up to $32 billion in private capital is expected to be deployed to accomplish this task, which is unprecedented in an Australian context.

AEMO Services will use a Scheme Financial Vehicle (or SFV) to intermediate cash flows between entities associated with the Long-Term Energy Services Projects and the Distribution Network Service Providers.

AEMO Services executive general manager Paul Verschuer described the establishment of the SFV as a major milestone as it moved from planning to active tender processes. 

“The Scheme Financial Vehicle has been specifically designed as an independent entity to provide long-term certainty to private sector participants and their investors,” he said.

The Scheme Financial Vehicle will establish and maintain the Electricity Infrastructure Fund and will serve as counterparty to Long-Term Energy Service Agreements with project proponents recommended by AEMO Services’ rolling tender process.

Related article: NSW Govt pledges $1.2b to fast-track renewables

It will also provide revenue, as determined by the Australian Energy Regulator, for Renewable Energy Zone network projects and Priority Transmission Infrastructure Projects developed under the roadmap.

Following an open tender, Equity Trustees has been appointed as Financial Trustee under the Electricity Infrastructure Investment Act 2020 (NSW). Equity Trustees will also hold all the shares issued in the SFV ‘in trust’ under the Electricity Infrastructure Investment Act.

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