Nexa Advisory Submission- Orderly Exit Management Framework Draft Exposure Bill and Rule

Nexa Advisory welcomes the opportunity to provide comment on the Orderly Exit Management (OEM) Framework Draft Exposure Bill and Rule.

We are pleased to see some transparency and governance improvements in this draft.  However, the design of the OEM Framework still has fundamental flaws that have not been addressed.  This is a missed opportunity for the energy sector, that could potentially be used for future fossil fuel asset closures including gas.

Since the publication of the OEM Framework consultation paper in mid-December 2023, a significant pipeline of projects has been supported by the NSW Long-Term Energy Service Agreement and federal Capacity Investment Scheme (CIS)

The success of these tenders demonstrates strong private investor appetite in the state. However, the uncertainty of delayed coal exit will have significant commercial implications for these projects. The NSW Government must ensure the exit of Eraring coal power station can be comfortably managed with no further extensions.

The agreement between NSW Government and Origin Energy has an expiry date. However, a ‘coal exit’ plan has not yet been released to provide certainty that the Eraring power station will not be extended beyond the initial two years, to the optional term of four years.

See our full submission here: Nexa Advisory Submission- NSW OEMF Exposure Bill 23 Jul 2024