Two BESS, one pumped hydro project awarded in NSW long-duration storage tender

The fifth tender in the New South Wales Electricity Infrastructure Roadmap – a plan to transform the Australian state’s electricity system by 2040 – has awarded a record 1.03 GW/13.79 GWh of long-duration storage long term energy service agreements (LDS LTESA) to three projects.

Federal utilities body the Australian Energy Market Operator (AEMO), which administered the tender, revealed UK-based battery developer Eku Energy, Victoria-headquartered renewables business Enervest Utility, and Philippines-owned clean energy company ACEN were the successful bidders.

Eku was awarded one of the three long term energy service agreements available, for its 100 MW/800 MWh Griffith battery energy storage system (BESS) in the Riverina region. Enervest’s proposed 15 MW/1,000 MWh Stoney Creek BESS, planned near Narrabri, in the New England renewable energy zone (REZ) was awarded a supply deal and ACEN’s Phoenix 800 MW/11,990 MWh pumped hydro energy storage (PHES) project, at Lake Burrendong, 340 km northwest of Sydney, was also successful. This is the first time a PHES project has been awarded an LTESA.

Stoney Creek and Griffith BESS projects have secured maximum LTESA contract terms of 14 years each, while the PHES project’s LTESA contract term was for a maximum of 40 years. The average price stood at $135,000/MW/year, and $15,000/MWh/year and an equivalent annual annuity of 95,000/MW/year and $10,000/MWh/year.

In reaction to the tender result announcement, Eku Energy Chief Executive Officer Daniel Burrows said securing the LDS LTESA for the Griffith BESS is a milestone for the company.

“This project underscores our commitment to accelerating the energy transition by delivering safe and reliable energy storage solutions, through providing cost-effective clean energy to existing and future generations, whilst also supporting New South Wales’ transition to a sustainable energy future,” Burrows said.

Located approximately 500 metres from the Griffith Substation, the Griffith BESS will provide efficient integration into the existing electricity network with its storage capacity able to serve over 88% of daily electricity demand from the Griffith local government area.

Financial close is expected in the March quarter of 2026 with the Griffith BESS anticipated to be operational in 2028.

AEMO Services is a subsidiary of the Australian Energy Market Operator (AEMO), responsible for administering the LDS LTESA tender process under the NSW Electricity Infrastructure Roadmap (EIR), a driver for the government’s aim to have 28 GWh of long-lasting energy storage by 2034.

The Tender Round 5 LDS projects are expected to contribute a further 11% towards the LDS minimum objective of 2 GW by 2030 and 49% toward the minimum objective of 28 GWh by 2034. Combined, outcomes from the three completed LDS tenders are expected to contribute an overall 40% to the 2030 minimum objective and more than 65% towards the 2034 minimum objective.

From pv magazine Australia.