The government of New South Wales in Australia has initiated a tender for long-duration energy storage projects, aiming to secure 1GW of eight-hour storage capacity.
The move is part of the state's strategy to transition towards renewable energy sources while ensuring a reliable and affordable energy supply.
The tender is designed to support the integration of solar and wind power into the grid by providing energy storage solutions that can release electricity on demand.
The NSW Electricity Infrastructure Roadmap Tender 5 is now accepting proposals for long-duration storage projects.
Projects must be capable of supplying energy to the state’s grid for a minimum of eight hours. Technologies such as pumped hydro, batteries and compressed air storage can be included.
The tender is a step towards achieving the state's goal of adding 2GW of new long-duration storage by 2030.
The energy equivalent of 1GW of eight-hour storage can meet the daily consumption needs of 505,000 households.
The projects are essential to the NSW government's plans for the transition to renewable energy, providing businesses and homes with affordable, reliable power while also lowering emissions to meet net-zero ambitions.
Long-duration storage is essential for balancing the intermittent nature of renewable energy.
The NSW government has also announced a second Renewable Energy Zone.
The South West Renewable Energy Zone, located around Hay, NSW, is now accepting applications through the NSW Electricity Infrastructure Roadmap Tender 5 for connection rights to the electricity grid.
Successful projects will compete for an initial 3.98GW of access rights, which could generate sufficient electricity for 1.9 million households.
New South Wales Minister for Climate Change and Energy Penny Sharpe stated: “Opening this tender for long-duration storage projects and access to a second Renewable Energy Zone are milestones in the Electricity Infrastructure Roadmap.
“They will deliver projects that ensure NSW has enough renewable energy generation and storage when coal-fired power stations retire. They also give certainty to investors and communities.
“Long-duration storage is a key part of our future energy system, ensuring we have power when we need it.
“The opening of the second access rights process will ensure the right combination of projects can connect to the grid in a way that delivers for NSW electricity consumers and host communities.
“It shows the NSW government is delivering the transition to a renewable energy system that will allow households and businesses to access affordable, reliable and clean energy to bring down bills and greenhouse gas emissions.”
The energy storage tender follows the NSW government's recent decision to extend the operational lifespan of the 2.92GW Eraring coal-fired power station, owned by Origin Energy, until at least August 2027.
