THE FOLLOWING SIX YEARS

- Extra base load capacity will be necessary in the medium term as average demand levels continue to rise.

- The Government maintains its preference for investment in new generation to come from the private sector.

- The extension of the Greenhouse Gas Abatement Scheme and the proposed National Emissions Trading Scheme will enable private investment to respond to carbon emission constraints.

- Strong network investment will continue to take place to meet reliability improvements, match rising demand, renew assets and provide access to new growth areas in the state.

- A key priority is a major investment program for Western Sydney to meet projected demand arising from economic and residential growth (particularly the North West and South West Growth Centres). This infrastructure program will be rolled out incrementally and paced according to projected population growth rates.

FIGURE 16 NSW SUPPLY-DEMAND BALANCE

SOURCE: NEMMCO 2005 STATEMENT OF OPPORTUNITIES

NOTE: LOW RESERVE CONDITION (LRC) POINT INDICATES POTENTIAL SHORTFALLS IN SUPPLY FROM 2008-09 ONWARDS IN TIMES OF EXTREME PEAK DEMAND

[Access: 5.4 Estimated Total Costs Table - PDF]