The tender is being managed by AEMO Services, a subsidiary of the Australian Energy Market Operator (AEMO), and is seeking applications for storage projects based in Sydney, Newcastle, or Wollongong. Battery projects must have a minimum duration of two hours.
The indicative size for the tender in 380 MW, but AEMO Services noted it can award more “if it is in the long-term financial interest of NSW electricity consumers.”
The 380 MW firming capacity, as well as the 600 MW of long duration storage it plans to also tender, seeks to fill the gap that will be created by the impending closure of the country’s biggest coal generator – Origin’s 2.8 GW Eraring power station in the NSW Hunter region – slated for 2025.
During his campaign to become NSW Premier, the newly-elected Labor leader Chris Minns, opened the door to buying Eraring from Origin Energy. Canadian fund Brookfield recently acquired Origin Energy and has not closed the door to this proposition, but its Asia Pacific CEO Stewart Upson said such a deal would need to fit into Brookfield’s decarbonisation vision.
Interested parties will be able to submit project bids through AEMO Service’s online portal until May 18.
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