The Infrastructure Investment Objectives Report is our plan to meet NSW’s future electricity infrastructure needs.
The IIO Report sets out a development pathway for the next twenty years, and a tender plan for the next decade. It identifies the timing and scale for renewable energy generation and storage investment, and provides the necessary flexibility to ensure we continue to prioritise the interests of energy consumers.
Working from the blueprint set out by the IIO Report, AEMO Services considers the latest available information when assessing tender bids and network infrastructure project authorisations.
The Report is updated on a regular basis to reflect progress against our objectives and evolving market conditions.
Updates since the Draft 2023 IIO Report
- Generation infrastructure: the final Development Pathway for generation is similar to the draft. The modelled construction of generation infrastructure shows a linear trajectory from now to 2030, and the 10-Year Plan continues to show the investment opportunity with consistent tenders for long-term energy service agreements for generation.
- Long-duration storage infrastructure: the final Development Pathway for long-duration storage is similar to the draft. The modelled construction of long-duration storage infrastructure is back-ended to 2030, and the 10-Year Plan shows that AEMO Services will tender earlier to test cost assumptions and mitigate delivery risk associated with lead times.
- Firming infrastructure: the final Development Pathway for firming has changed compared to the draft. Consistent with notice to market associated with Tender Round 2, the firming target increased from 375 MW to 930 MW, with 1,075 MW ultimately awarded. There is now no additional modelled requirement until the mid-2030s.
Updates since the Final 2023 IIO Report
- Two important updates have been issued since the Final 2023 IIO Report was published, related to the Q2 2024 and Q4 2024 generation infrastructure tenders. You can find the latest update here.
The 2023 IIO Report shows over 46% of the minimum objective has been achieved for generation with 15,600 GWh / 5,790 MW added since November 2019. Outcomes from Tender 1 and 3 have helped in securing almost 600 MW, of the 2 GW minimum for long-duration storage. Separately, Tender 2 has secured 1 GW of new firming capacity, which increases system reliability, particularly in the short term.
2023 IIO Report webinar briefing – 31 January 2024
Draft 2023 IIO Report webinar briefing – 18 May 2023
Draft 2023 IIO Report webinar briefing – 23 May 2023
2023 IIO Deep Dive – VRE Lulls
2023 Deep Dive – Costs
2023 Deep Dive – Scenarios
AEMO Services, as the NSW Consumer Trustee, was directed by the NSW Minister for Energy to conduct a competitive tender for Long-Term Energy Services Agreements (LTESAs) for firming infrastructure.
In response to this direction and as required by the Electricity Infrastructure Investment Act 2020 (NSW) (EII Act), we produced a Firming Infrastructure Investment Objectives Report (‘Firming IIO Report’). The Firming IIO Report sets out a development pathway for firming infrastructure and key parameters of Tender Round 2 for firming infrastructure that was conducted in response to the direction. This includes:
- The timing of the tender (which commenced 3 April 2023).
- The indicative target capacity of firming infrastructure LTESAs of 380 MW located in the Sydney, Newcastle, Wollongong sub-region and operational by Summer 2025-26. More information on eligibility is available in Market Briefing Four.
The EII Act requires that firming infrastructure is scheduled by AEMO in its central dispatch process under the National Electricity Rules.
- This report does not amend the timing or indicative size of Tender 1, currently in progress.
- Tender 2, which we expect to hold in Q2 2023, will be for firming, generation and long-duration storage (LDS) with the following indicative sizes:
- Firming: 380 MW of firming infrastructure located in the Sydney-Newcastle-Wollongong sub-region
- Generation: 2,500GWh of annual generation (equivalent to 950MW)
- Long Duration Storage: Up to 600MW with the size dependent on how much storage is awarded in Tender 1. LDS tenders are planned to occur annually however there is an option to undertake a contingent tender should the need arise. In this case we are planning an LDS tender to complement the firming tender because LDS and firming infrastructure can service similar functions in terms of reliability.
- There are no other changes to the generation and long-duration storage elements of the Development Pathway and 10-Year Plan from the 2021 IIO Report.
- A draft 2023 IIO Report is expected to be published for consultation in early 2023.
Generation Long-Term Energy Service Agreement Size
This report sets out a 10-Year Plan for competitive tenders for built energy infrastructure to give effect to the Development Pathway. It has now been superseded by X . The updated plan remains substantially the same as that contained in the 2021 IIO Report , except for the following three changes:
- A Q2 2023 tender for an indicative amount of 380 MW of firming infrastructure has been added.
- A tender for long-duration storage infrastructure has been added alongside the Q2 2023 firming tender, with its indicative size contingent on the conduct of the Q4 2022 tender for long-duration storage infrastructure.
- Given the passage of time since the 2021 IIO Report, the 10-Year Plan has been extended to cover 2031-2032, but no additional tenders are identified to be required in that year to give effect to the next year of the Development Pathway.
Tenders for long-duration storage (LDS) have not changed since publication of the 2021 IIO Report and are outlined in the figure below.
As the NSW Consumer Trustee, AEMO Services has prepared the Infrastructure Investment Objectives Report - our blueprint for meeting the state’s future electricity needs.
It sets out a development pathway for the next twenty years, and a tender plan for the next decade, identifying the timing and scale for generation and storage investment over that period and building in flexibility to ensure that the interests of consumers are always prioritised.
The repeatable, rolling tender schedule set out in the Infrastructure Investment Objectives Report guarantees efficiency and certainty for participants, and encourages ongoing familiarity with AEMO Service’s processes.
The Report will be updated at least every two years.
Generation Long Term Energy Service Agreement Size
Following the publication of the 2021 Investment Objectives Report in December 2021, AEMO Services published an Update to the Tender Plan Implementation (below). This update outlined how AEMO Services intends to implement its 10 year plan for conducting competitive tenders for generation LTESAs including an updated larger tender in Q4 2022 at an increased indicative size of 2,500 GWh per annum.
The figure below shows the current implementation of the 10 year plan for generation LTESAs tenders, in line with the April 2022 update, and how this compares to the 10 year plan originally presented in the 2021 IIO Report.
Long Duration Storage Long Term Energy Service Agreement Size
Tenders for long duration storage (LDS) have not changed since the publication of the 2021 IIO Report and are outlined in the figure below.
