Renewable energy tender to power a third of NSW homes

The NSW Government is launching a renewable energy tender seeking enough new generation to power about one-third of homes across NSW.

Tender 8 is seeking 2.5 gigawatts of renewable energy, making it the largest generation Long-Term Energy Service Agreement tender under the NSW Electricity Infrastructure Roadmap. The tender will be run by the independent Consumer Trustee, AusEnergy Service Limited (ASL).

Once awarded, it will pave the way for NSW to achieve up to 90% of its renewable energy generation target of 12 gigawatts by 2030.

“This is the largest renewable generation tender in NSW history, and it shows just how serious we are about delivering cheaper and more reliable power for households and businesses,” said Minister for Climate Change and Energy Penny Sharpe.

At the same time, ASL will open Tender 9, seeking up to 12 gigawatt-hours of long-duration storage.

“Tender 8 alone will deliver enough energy to power about one-third of homes in NSW, marking a major step forward in our plan to future-proof NSW’s electricity system. Tender 9 ensures we can store renewable energy, so it can be released on demand when needed, making our grid more stable and reliable,” Sharpe said.

NSW is already on track to exceed its long-duration storage targets for 2030 and 2034. The state government is seeking to unlock 50% more capacity beyond those benchmarks, to build a stronger pipeline of projects and a more reliable electricity system for the people of NSW.

Long-duration storage is critical for reliability, as it allows energy to be stored for extended periods and dispatched when demand is high or when weather conditions are not ideal for renewables to generate power. Eligible technologies include large-scale batteries and pumped hydro projects.

When delivered, the state government said Tenders 8 and 9 will boost the state’s generation and storage capacity, helping ensure energy is always available when households, industry and businesses need it. They will result in enough generation capacity to power 1.26 million homes.

The government said Tender 8 will also be the first to introduce a new Hybrid Generation Long-Term Energy Service Agreement product, allowing applicants to combine solar or wind generation with battery storage in a single project. This will make it easier for investors to bring forward projects that deliver the best outcomes for consumers.

“This is about keeping the lights on when aging coal-fired power stations retire and doing it in a way that puts downward pressure on electricity bills for NSW families,” Sharpe said.

The successful projects under Tenders 8 and 9 are expected to be determined by late 2026. To find out more about the ASL tenders, visit the NSW Climate and Energy Action website.

Image credit: iStock.com/Surasak Suwanmake