NSW makes significant commitment to renewable power

The NSW Government has demonstrated its commitment to renewable power through two substantial new energy tenders.

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. Via this agreement, the government hopes to power about one-third of NSW homes.

The tender will be run by the independent Consumer Trustee, AusEnergy Service Limited (ASL). Once awarded, it should pave the way for NSW to achieve up to 90% of its renewable energy generation target of 12 GW by 2030.

At the same time, ASL will open Tender 9, seeking up to 12 gigawatt-hours of long-duration storage. Eligible technologies include large-scale batteries and pumped hydro projects.

“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.

“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.

“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.”

With NSW on track to exceed its long-duration storage targets for 2030 and 2034, the Minns government is now seeking to unlock 50% more capacity beyond those benchmarks, to further bolster the state’s grid and build a stronger pipeline of projects.

When delivered, Tenders 8 and 9 should result in enough generation capacity to power 1.26 million homes.

To adapt to the rapidly evolving market and improvements in battery technology, Tender 8 will also 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.

The successful projects under Tenders 8 and 9 are expected to be determined by late 2026.

Image caption: Aerial view of a solar farm at Walla Walla, NSW Australia. Image credit: iStock.com/davidf