Submission: NSW DCCEEW Re: Energy Security Safeguard policy reform
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20 February 2026
To: NSW Department of Climate Change, Energy, the Environment and Water
Re: Energy Security Safeguard policy reform
Thank you for the opportunity for the Institute for Energy Economics and Financial Analysis (IEEFA) to provide input to the Energy Security Safeguard policy reform consultation.
IEEFA is an independent energy finance think tank that examines issues related to energy markets, trends and policies. The Institute’s mission is to accelerate the transition to a diverse, sustainable and profitable energy economy.
A significant focus of IEEFA’s work is examining the role of the demand-side in delivering a least-cost decarbonised energy system. We commend the government of New South Wales for undertaking this broad-reaching review of the Energy Security Safeguard, as this represents a significant opportunity to elevate the contribution of the demand-side to NSW’s energy future.
IEEFA supports an increased focus on electrification under the Energy Savings Scheme, and we believe this can be managed in a way that also supports electricity reliability.
We see opportunities to expand the Peak Demand Reduction Scheme via activities that would reduce costs for consumers while helping to manage both summer and winter peak demand.
We also support an increased effort to improve access to the ESS and PDRS – particularly for financially disadvantaged households, renters and apartment dwellers. However, we note that for such efforts to be effective, they will likely require broader policy changes such as improved minimum rental standards.
In addition to these matters, we have responded to specific consultation questions, and have provided a separate submission in response to the Energy Security Safeguard rule change reform consultation.
Further detail can be found on the following pages. Please do not hesitate to contact us if you have any queries regarding this submission.
Kind regards,
Jay Gordon, Energy Finance Analyst – Australian Electricity
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