Australian tender targets 500 MW of new firming capacity

The seventh tender under the NSW Electricity Infrastructure Roadmap will open tomorrow seeking 500 MW of firming or demand response capacity, to be operational before November 2027.

The state government is looking for bids from technologies including standalone batteries, demand response, and aggregated portfolios of smaller batteries. Co-located generation, and dispatchable, assets that share a common measurement point, and gas projects are also eligible to participate.

AusEnergy Services Ltd., which is conducting the tender in its capacity as the NSW consumer trustee, said projects must have a minimum capacity of 5 MW and be able to dispatch continuously at their maximum for a minimum duration of about two hours.

The tender is prioritizing projects able to support the major load centers of Sydney, Newcastle, and Wollongong.

The winning bids will be awarded long-term energy service agreement (LTESA) contracts.

“This is a standalone opportunity for project proponents to secure a firming or demand response LTESA that can be used to accelerate delivery and support revenues when in operation,” ASL Chief Executive Officer Nevenka Codevelle said.

The tender forms part of the state’s infrastructure road map which is seeking multiple gigawatts of renewables generation and storage capacity to address the gap created by the scheduled closure of the state’s aging coal-fired power generators.

NSW Energy Minister Penny Sharpe said this tender is focused on unlocking firming capacity where it’s needed most, aiming to support projects that can deliver reliability to the state’s energy system.

“As we continue to transform our energy system, we know there will be challenges, which is why we’re taking decisive steps now to keep the lights on and prevent price spikes down the track. That’s what this is about,” she said.

Sharpe said about 36% of the state’s electricity supply currently comes from renewable sources, and projects already contracted and in construction will take the state more than two-thirds of the way to its 2030 renewable energy generation goal, and about 40% of the way to its 2030 long-duration-storage target.

From pv magazine Australia.