NSW Energy Security Corporation begins work with $1 billion to co-invest in grid infrastructure
A publicly backed corporation is now operating in New South Wales, set up to co-invest in energy storage, network upgrades and consumer energy systems to help manage demand and future-proof the electricity grid.
A new state-run energy investor has officially opened for business, with a $1 billion fund aimed at improving the reliability and security of New South Wales' electricity system.
The Energy Security Corporation (ESC) was created by the Minns Labor Government to partner with private investors on projects that fill critical gaps in the state’s energy infrastructure, particularly as ageing coal-fired stations retire and electricity demand continues to grow.
Rather than funding new generation capacity, the ESC will focus on large-scale storage—such as big batteries and pumped hydro—alongside upgrades to transmission infrastructure and scalable community energy technologies like virtual power plants.
“The Energy Security Corporation will invest where the need is urgent,” said CEO Paul Peters. “Our role is to bring the flexible capital needed to accelerate infrastructure projects and create a modern, resilient energy system.”
Now fully operational, the ESC has appointed an independent board led by Chair Cameron O’Reilly, who in 2023 headed the state’s Electricity Supply and Reliability Check Up. The board also includes directors with experience across energy, infrastructure, finance, risk and law: David Borger, Helen Conway, Michael Cummings, Sharon Eacott, Katerina Kimmorley and Daniel Papps.
“It’s an honour to serve as the inaugural Chair of the Energy Security Corporation,” said Mr O’Reilly. “The ESC has a vital role to play in NSW’s energy transformation.”
Established under the Energy Security Corporation Act 2024, the ESC’s core purpose is to support projects that improve the long-term stability of the energy system while also contributing to NSW’s emissions targets under the Climate Change (Net Zero Future) Act 2023. The ESC’s investments are also expected to return a profit over time, in line with its public mandate.
Minister for Climate Change and Energy Penny Sharpe said the Corporation provides a new way for the public to be part of the transition.
“After a decade of privatisation, the Energy Security Corporation gives the people of NSW the chance to invest in their energy system, and we’re thrilled to appoint a Board to accelerate this process," Sharpe said.
Projects backed by the ESC will be assessed against an Investment Mandate set by the Minister for Energy. Current priorities include a mix of short and long-duration energy storage, upgrades to support grid operation, and better integration of consumer-side energy, such as rooftop solar and batteries.
The corporation has already begun early engagement with developers, energy firms and financial backers to identify where investment can be most useful.
