AEMO Services has announced that three projects have been successful in its latest NSW Roadmap competitive tender for long duration storage, nearly tripling the energy storage capacity so far supported by the scheme.
The successful projects are made up of two batteries and, for the first time, a pumped hydro project, with a combined capacity totalling 1.03GW and 13.79GWh of energy storage—exceeding the tender’s indicative target of 1GW.
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The projects are ACEN Australia’s Phoenix PHES (800MW/11,990MWh), Stoney Creek BESS (125MW/1,000MWh) and Griffith BESS 100MW/800MWh).
AEMO Services executive general manager Nevenka Codevelle said, “The long duration storage capacity supported through this tender is the largest to date, and we’re seeing strong competition and innovation in how project proponents are bidding—meaning we’ve been able to support more projects with increasing value to NSW electricity consumers.”
LTESAs are innovative contracts designed to spur investment and lower the cost of project financing, bringing forward new energy infrastructure investment while limiting cost exposure to NSW electricity customers.
The successful projects are each able to continuously dispatch power for at least 8 hours at their registered capacity, with the pumped hydro facility capable of dispatching its stored energy over about 15 hours. This provides reliability and system strength benefits for the energy system as well as putting downward pressure on wholesale market prices and a reduction in renewable generation curtailment.
“The projects we selected used the LTESA to top-up their forecast revenues, with the LTESA expected to be underwriting payments up to the minimum gap required to enable investment.
“Some of the successful proponents offered more favourable commercial terms than the pro-forma contract, such as a reduced contract term or nominal fixed prices. This flexible use of the LTESA is something we are continuing to see develop over the course of the tender program.”
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“We’re now looking ahead to our next long duration storage tender for assets that commit to be operational by 2034, scheduled to open before 30 June 2025,” Codevelle said.
“In particular, we’re encouraging short lead-time projects to come forward to help us meet our 2030 target.”
