NSW Roadmap - Tender Round 5

We have announced the Long Duration Storage (LDS) outcome of Tender Round 5.

Three projects representing 1.03GW (13.79 GWh) of long duration storage have received Long-Term Energy Service Agreements (LTESAs) following AEMO Services’ competitive tender assessment process.

Successful projects include a Pumped Hydro Energy System (PHES) which is expected to have a storage capacity of about 11,990 MWh and capable of dispatching its stored energy over about 15 hours, and two Battery Energy Storage Systems (BESS) which each have storage capacity equivalent to 8 hours’ duration.

More information on the successful projects and the assessment of bids for Tender Round 5 is available in the NSW Roadmap Tender Round 5 Market Briefing Note.

The Tender Round 5 LDS projects are expected to contribute a further 11% towards the LDS minimum objective of 2 GW by 2030 and 49% toward the minimum objective of 28 GWh by 2034, set under the Electricity Infrastructure Investment Act 2020 (EII Act). Combined, outcomes from the three completed LDS tenders are expected to contribute an overall 40% to the 2030 minimum objective and more than 65% towards the 2034 minimum objective.

Benefits of LTESA Awarded Projects

• Consumer value: the successful projects demonstrate long-term financial value for NSW electricity consumers, including competitive cost and limited cost exposure, high market benefits, and minimal or no departure from the pro-forma contract risk allocation. Projects also committed to a diverse range of social license initiatives.
• Energy delivery: successful projects have a combined capacity of 1,025 MW, equivalent to about 8% of NSW’s peak summer demand.
• System strength: supports the reliability and security of NSW’s energy system by providing additional energy storage and dispatch capacity, frequency and voltage control, and system restart ancillary services.

NSW Roadmap Tender Round 5 sought to allocate up to an initial 3.98 GW of Access Rights in the South West Renewable Energy Zone, in addition to securing 1 GW of Long Duration Storage.

AEMO Services, as the Independent NSW Consumer Trustee, has concluded the tender for South West Access Rights according to the timeline published on our website. Successful and unsuccessful proponents have been notified. AEMO Services in its role as the Consumer Trustee provides recommendations to EnergyCo as the Infrastructure Planner.

AEMO Services understands that following the relevant statutory processes, EnergyCo expects to make a decision on the grant of Access Rights in Q1 2025. They will notify successful proponents once the decision has been made.