Ausgrid, Endeavour Energy and Essential Energy have launched the first-ever NSW Distribution System Plan (DSP), a landmark strategy aimed at delivering billions in savings and creating a vital buffer during the state’s energy transition.
The DSP marks the first time all three NSW electricity distribution companies have collaborated to produce a unified strategy for fully leveraging and optimising the existing network to meet future energy needs.
Independent modelling estimates that NSW could unlock between $2 billion and $4.3 billion in value by using available network capacity and integrating Consumer Energy Resources (CER) such as rooftop solar, batteries and electric vehicles.
Ausgrid’s Group Executive of External Affairs & Strategy, Tim Jarratt, said the plan offers a two-to-five-year buffer on the energy transition timeline, supporting a smoother, more orderly and resilient shift.
“The DSP is an Australia-first roadmap that finally shines a light on the ‘missing middle’ – our distribution networks,” he said.
“It proves that by using our existing assets smarter, we can deliver billions of dollars in value, significantly de-risk the transition, and buy up to five years of breathing room while critical transmission infrastructure is built.”
Colin Crisafulli, Endeavour Energy’s General Manager of Future Grid & Asset Management, said optimising the grid will maximise the value of consumer resources.
“We’re not just waiting for major transmission to be built, we’re actively transforming today’s network into a dynamic, flexible platform that coordinates customer energy resources in real time. This reduces system pressure, accelerates clean energy integration, and lowers costs for all customers,” he said.
“Our modelling shows that pushing storage deeper into the distribution network and finding customer centric ways of coordinating customer energy resources can defer expensive network upgrades by as much as 15 years. A proactive, network-led approach could also fast-track EV adoption by half a million vehicles in NSW, a huge leap forward for faster transport decarbonisation.”
By unlocking wind capacity and building more generation closer to where it’s needed, the DSP also suggests NSW can reduce its reliance on interconnection with other states.
Essential Energy’s Chief of Customer and Corporate Affairs, Annie Pearson, highlighted that the report emphasises broader reforms to ensure the benefits and costs of the transition are shared fairly across NSW.
“It is vital that we put our communities first, supporting them in their choice around energy resources, while providing everyone with the opportunity to participate in and benefit from a cleaner, fairer energy system,” she said.
“This means accelerating reforms regarding the cost allocation of the transition, the role of shared infrastructure, like community batteries, and how to co-ordinate new industries, like data centres.”
The DSP Opportunities Report is available here.