Greenhouse gas emissions intensity of the NSW electricity grid

AEMO Services has awarded 6 Long-Term Energy Service Agreements for firming infrastructure, 3 firming supply agreements and 3 demand response agreements.

As regulator under Part 12 of the Electricity Infrastructure Investment Regulation 2021, we have a role to ensure that facilities which hold a firming supply agreement meet their emission intensity obligations under the Regulation.

Once operational, the EPA must calculate the greenhouse gas emissions intensities of the NSW grid and of the operational firming supply facilities using the formulas prescribed in the Regulation. However, the EPA does not need to calculate the emissions intensity for battery energy storage systems (BESS) because they don’t generate emissions, they just store electricity. In accordance with the Regulation, their emissions are taken to be zero. All firming supply agreements are currently for BESS.

The EPA’s role does not extend to LTESA operators who have entered into demand response agreements.

We will also need to determine if firming infrastructure operators must purchase and surrender offset units to meet their obligations. Prior to 2036, offsets will be needed if the emissions intensity of a facility is higher than that of the NSW grid for each calendar year. After 2036, firming infrastructure operators must achieve net zero by purchasing offset units equal to their facility’s scope 1 emissions.

The table below shows the greenhouse gas emissions intensity for the NSW electricity grid for the 2021 to 2024 calendar years. We will publish the NSW grid intensity and the emissions intensities of facilities each year. See our guideline (PDF 1MB) for more information on our responsibilities and how we will fulfil them. 

NSW Grid greenhouse gas emissions intensity

*National Greenhouse and Energy Reporting data is reported on financial year. The EPA averages this data reported from the relevant financial years to calculate emissions intensity for a calendar year.