The Peak Demand Reduction Scheme (PDRS) was established in September 2021 to reduce peak electricity demand and pressure on the electricity system in NSW. Reducing peak demand minimises the risk of blackouts or price spikes during hot summer days when electricity usage and demand is at its peak. The PDRS is one of the schemes in the NSW Energy Security Safeguard (see the Energy website for more information about the Safeguard). It commenced on 1 November 2022.

The PDRS provides financial incentives for households and businesses to implement activities that reduce demand for electricity during peak times. These incentives are passed on to households and businesses by Accredited Certificate Providers (ACPs) that create a Peak Reduction Certificate (PRC) from the activity.

In addition to reducing peak demand, the PDRS can help:

  • NSW achieve its net zero emissions target
  • ensure we have a safe and reliable electricity system
  • households and businesses in NSW save money on their electricity bills.

The PDRS provides incentives for activities that:

  • use less electricity during peak times, like more efficient air conditioners, heat pump water heaters and residential pool pumps
  • shift electricity use from peak times, like installing a household battery
  • allow control of appliances during peak times, like signing a household battery up to a virtual power plant (or VPP).

See our Calculation methods pages for more information.

ACPs can register PRCs in the Registry of Certificates.

Sign up for PDRS updates.