NSW powers ahead with biggest energy storage tender
NSW has opened the largest energy storage tender in NSW history, seeking new long-duration storage projects to boost electricity reliability and keep the lights on in NSW.
These projects will help ensure a steady and reliable supply of energy around the clock. They will play a significant role in the NSW Government’s transition to renewable energy, which will deliver reliable and affordable power to households and businesses at the same time as driving down emissions to meet our net zero targets.
Long-duration storage projects can bid for financial support under the new NSW Electricity Infrastructure Roadmap Tender 5 which is now open. This tender offers support for up to 1 gigawatt of projects, which can each release energy into the NSW grid for at least eight hours.
The energy stored within 1 gigawatt of eight-hour long-duration storage is equivalent to the daily energy consumption of around 505,000 households. This tender will take NSW closer to its target of 2 gigawatts of new long-duration storage by 2030.
Long-duration storage serves an important role as it allows renewable energy such as solar and wind to be stored and then released on demand when needed. Projects could include pumped hydro, batteries, compressed air storage and other technologies.
This is the fifth tender under the NSW Electricity Infrastructure Roadmap, and the third for long-duration storage. It is open to projects connecting to new planned infrastructure in Renewable Energy Zones with Access Schemes, or existing infrastructure state-wide.
Renewable Energy Zones are the power plants of the future. They group generation and storage projects in areas where there is plenty of renewable resources, and connect them to transition lines to pump the electricity around NSW.
The NSW Government is also announcing that a second Renewable Energy Zone is open for business. The new NSW Electricity Infrastructure Roadmap Tender 5 is accepting applications for the right to connect projects in the South West Renewable Energy Zone, around Hay.
Companies can apply for access rights, which allow them to progress their connection to the electricity grid.
Projects will compete for an initial 3.98 gigawatts of Access Rights, which unlocks the ability to generate enough electricity to power more than 1.9 million households.
They will be assessed on their contribution towards and engagement with communities, and those awarded rights will pay fees to fund community benefit and employment programs in the region.
The South West Renewable Energy Zone is expected to receive up to $2.8 billion in private investment by 2030. At its peak, it is expected to support more than 2,000 construction jobs in the region.
AEMO Services is conducting the long-duration storage and South West Access Rights tenders, as the state’s independent Consumer Trustee. Projects can register online at AMEO Services.
Quote attributable to Minister for Climate Change and Energy Penny Sharpe:
'Opening this tender for long duration storage projects and access to a second Renewable Energy Zone are milestones in the Electricity Infrastructure Roadmap.
'They will deliver projects that ensure NSW has enough renewable energy generation and storage when coal fired power stations retire. They also give certainty to investors and communities.
'Long-duration storage is a key part of our future energy system, ensuring we have power when we need it.
'The opening of the second access rights process will ensure the right combination of projects can connect to the grid in a way that delivers for NSW electricity consumers and host communities.
'It shows the NSW Government is delivering the transition to a renewable energy system that will allow households and businesses to access affordable, reliable and clean energy to bring down bills and greenhouse gas emissions.'
