NSW targets 3,000 GWh of renewable generation in latest tender round

The New South Wales (NSW) government has confirmed it will be seeking 3,000 GWh of annual generation in its fourth competitive tender as part of its plan to support the private sector to deliver at least 12 GW of new renewable electricity generation and 2 GW of long-duration storage by 2030.

AEMO Services, which is administering the tender process in its capacity as NSW Consumer Trustee, said while the latest tender will focus on new generation, it will also feature access rights, which provide successful projects with the right to connect to the grid in the state’s planned renewable energy zones.

The access rights are available for up to 5.8 GW of capacity in the Central-West Orana Renewable Energy Zone (REZ), in the region surrounding Dubbo in the state’s northwest.

AEMO Services said projects located anywhere in NSW are eligible to participate in the fourth tender which will open on 31 October.

Projects can bid for only Long Term Energy Supply Agreements (LTESAs), that provide a minimum guaranteed price that helps reduce risk for investors, or a combination of LTESAs and access if located in the Central-West Orana REZ.

The tender is the latest in a 10-year program which will see tenders held approximately every six months as part of NSW realising its ambitious Electricity Infrastructure Roadmap.

This fourth Roadmap tender follows the first tender, which concluded in May, with three generation projects contracted at a total capacity of 1,395 MW, and one long-duration storage battery project.

Successful proponents from the second tender, for firming infrastructure, and third tender, for both generation and long-duration storage, are expected to be announced by the end of the year.