NSW awards just two projects including a VPP to deliver 2.1 GWh of firming capacity

The 2 GWh Tomago battery energy storage system (BESS), and a 128 MWh virtual power plant (VPP) have successfully secured tenders via the New South Wales (NSW) Roadmap Tender 7 for Firming Infrastructure.

Respective proponents, AGL and Enel X, have been awarded Long-Term Energy Service Agreements (LTESAs), and together will deliver 532 MW or 2,218 MWh of firming capacity, contracted to be operational by the end of November 2027.

The projects join approximately 1 GW of firming infrastructure secured under Tender 2, with Tender 7 increasing the total firming capacity contracted under the Roadmap to over 1.5 GW.

All firming projects are required to support the grid during Lack of Reserve (LOR) events, which occur when the available electricity supply is at high risk of not meeting, or is not meeting, demand.

A third firming infrastructure tender is scheduled for late 2026 or early 2027, targeting projects that can be operational by 2033-34.

A further two NSW Roadmap tenders beginning in May 2026 will seek 2.5 GW of generation projects and 12 GWh of long duration storage projects.

Tasked with conducting the tenders, AusEnergyServices Limited (ASL) Chief Executive Officer Nevenka Codevelle said the tender attracted strong competition from projects capable of supporting the Sydney-Newcastle-Wollongong region.

“A key benefit of these contracts is they require projects to support the system when consumers need them most, with performance obligations that require projects to make capacity available during Lack of Reserve 2 and 3 events,” Codevelle said.

“Each project’s ability to support the system during these times of need was an important consideration in the tender.”

AGL

The approximately $800 million (USD 572 million) Lithium-ion Tomago BESS is a 500 MW / 2,000 MWh grid-scale battery project developed by AGL Energy in the Hunter region, to support the Hunter-Central Coast Renewable Energy Zone (REZ).

The BESS is located in the Tomago Industrial Estate, near Raymond Terrace, approximately 170 kilometers north of Sydney.

Enel X Australia

Enel X Australia’s 32 MW demand response VPP will aggregate flexible demand across businesses between Greater Sydney, the Central Coast, Newcastle and the Lower Hunter region to support grid reliability during periods of peak demand and system stress.

The Tender 7 award builds on Enel X Australia’s existing 95 MW of firming capacity projects under the NSW Roadmap as coal generation retires and more renewable power enters the grid.

The VPP can provide enough capacity to support around 10,000 homes during grid emergencies, adding to Enel’s existing systems, which can support around 30,000 homes.

The VPP is expected to commence commercial operations by 1 July 2027.

From pv magazine Australia.