The New South Wales Government has announced a tender to deliver 1,500MW of new firming infrastructure, expected to consist primarily of gas-fired peaking plants.
By the time NSW’s next two coal-fired power stations retire in 2033, long-duration energy storage such as large batteries and pumped hydro will meet most reliability needs. However, the NSW Government expects gas peaking plants will be the most likely solution to maintain reliability when needed.
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The tender will be conducted by ASL, the independent NSW Consumer Trustee. Consultation has now opened on the proposed tender design, giving industry an opportunity to provide feedback before the tender is launched in 2027.
By 2050, gas-fired power is expected to provide around 3.9% of NSW’s electricity.
NSW Minister for Energy Penny Sharpe said, “We are delivering new renewable energy to power NSW and have seen a huge proliferation in battery storage, but gas peakers will have an important role to play in keeping the lights on.
“While gas-fired power stations will operate only occasionally, they will play a critical role in maintaining reliability during rare periods when renewable generation is low and available storage has been exhausted.
“By planning years ahead, NSW is giving industry the time and certainty it needs to invest in and
build the infrastructure needed to keep electricity reliable as coal-fired power stations retire.”
The competitive firming tender is expected to open in early 2027, following consideration of stakeholder feedback and finalisation of the Firming LTESA product and tender design.
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Consultation is open until 4 November 2026. Stakeholders can review the consultation materials, including the consultation paper and provide feedback here.
