The successful projects from AEMO Services’ first competitive tender have been announced, with NSW consumers set to benefit from some of the lowest prices ever secured through similar tender processes in Australia.
The projects, selected as part of the NSW Electricity Infrastructure Roadmap, will help accelerate a new wave of electricity infrastructure that will power NSW businesses and households over the coming decades following the retirement of the state’s ageing coal-fired generation fleet.
AEMO Services executive general manager Paul Verschuer said that together, the successful projects would deliver enough electricity to power 700,000 homes and represent more than $2.5 billion in total investment in NSW’s renewable energy infrastructure.
“This is a highly successful outcome for the first Roadmap tender process: three renewable generation projects with a capacity of 1,395MW (4,009GWh), alongside one long-duration storage lithium-ion battery project with a continuous discharge capacity of at least 8 hours, all of which have comprehensively demonstrated their financial value to NSW electricity consumers and benefits to their host communities.
“The indicative generation target for this tender round was around 950MW (2,500GWh), and due to the quality and value of bids we’ve been able to exceed that projection.
Related article: AEMO services shortlists projects in Roadmap tender
“There is clearly a strong appetite for private sector investment in generation, storage and firming assets which capture the enormous economic opportunity of the energy transition, and we’re incentivising that investment through this tender process.”
AEMO Services chair Dr Paul Moy said that the incentive of long-term energy service agreement (LTESA), offered through the tender process, was working as expected to deliver better value for both NSW electricity consumers and project proponents.
“Greater certainty around key aspects of their investment decision will give proponents the confidence to bring projects forward, providing consumers earlier access to clean, reliable and more affordable power,” Dr Moy said.
The generation capacity of the selected projects is expected to be delivered by 2025/26, a key moment for the energy transition in NSW, and Dr Moy said that build trajectory was one of the key factors in AEMO Service’s decision making.
| Project name | Company | Capacity MW | Available GWh p.a | REZ | Type |
| Stubbo Solar Farm | ACEN Australia | 400MW | 1,135 | Central West Orana | Generation |
| Coppabella Wind Farm | Goldwind Australia Pty Ltd | 275MW | 870 | Non REZ | Generation |
| New England Solar Farm | ACEN Australia | 720MW | 2,004 | New England | Generation |
| Limondale BESS | RWE Renewables Australia | 50MW/400MWh+ | South West REZ | Long Duration Storage |
