From pv magazine Australia
The New South Wales (NSW) government has launched the latest of its planned tenders seeking new solar and wind generation and energy storage projects as it prepares for the exit of coal and the shift to a renewables-dominated grid.
AusEnergy Services Limited (ASL, formerly AEMO Services), serving as the NSW Consumer Trustee, has opened registrations for tenders 8 and 9 under the NSW Electricity Infrastructure Roadmap.
Tender 8 is seeking 2.5 GW of renewable energy generation – the state’s largest generation Long-Term Energy Service Agreement (LTESA) tender yet. In another milestone, this tender introduces a new hybrid generation LTESA, designed to cater for the growing presence of combined solar or wind generation and battery storage projects in the pipeline.
ASL said the tender is open to projects with a minimum capacity of 30 MW and those that are on track to commence operations before the end of 2029 are expected to be considered more favourably.
At the same time, ASL is conducting Tender 9, seeking up to 12 GWh of long-duration storage projects.
This tender is expected to deliver about 1.5 GW of large-scale batteries or pumped hydro projects, with successful projects featuring at least 5 MW of power capacity and a minimum eight hours of energy storage capacity. Projects are expected to be operational by 2034.
NSW Energy Minister Penny Sharpe said the tenders demonstrate how serious the government is about delivering on its renewable energy targets as coal exits the system.
“Tender 8 alone will deliver enough energy to power about one-third of homes in NSW, marking a major step forward in our plan to future-proof NSW’s electricity system,” she said. “Tender 9 ensures we can store renewable energy, so it can be released on demand when needed, making our grid more stable and reliable.”
NSW has announced stretch targets of 16 GW of new generation by 2030, significantly above the legislated 12 GW minimum objective, and 42 GWh of new long-duration storage infrastructure by 2034, well above the 28 GWh minimum target.
Sharpe said when delivered, tenders 8 and 9 will significantly boost NSW’s generation and storage capacity with Tender 8 to pave the way for the state to achieve up to 90% of its 2030 renewable energy generation target.
NSW is already on track to exceed its long-duration storage targets for 2030 and 2034 with Sharpe saying the state is now seeking to unlock 50% more capacity beyond those minimum benchmarks,
“This is about keeping the lights on when ageing coal-fired power stations retire and doing it in a way that puts downward pressure on electricity bills for NSW families,” she said.
Tenders 8 and 9 will be run separately and through a single-stage process, offering projects the ability to secure a LTESA.
Proponents participating in Tender 8 will be able to bid for either a generation or a hybrid generation LTESA while those taking part in Tender 9 will submit bids for long-duration storage LTESAs.
ASL said these revenue support mechanisms are designed to improve project bankability and support projects reaching final investment decision and financial close.
Registrations for both tenders are set to close towards the end of next month with the announcement of successful bids expected by late 2026.
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