New South Wales has launched its largest renewable energy tender, aiming to increase clean energy supply and strengthen the state’s electricity system.
The new tender is seeking 2.5 gigawatts of renewable energy capacity. This amount of energy could provide electricity for around one-third of homes across NSW.
The tender is part of the state’s long-term energy plan and will help increase renewable energy generation. Successful projects are expected to help NSW move closer to its renewable energy targets for 2030.
A second tender has also opened, seeking up to 12 gigawatt-hours of long-duration energy storage. This will support technologies that can store renewable energy for longer periods and release it when demand is high.
Long-duration storage is important for electricity reliability. It allows stored energy to be used when renewable sources such as wind and solar produce less power due to weather conditions.
Eligible storage projects may include large-scale batteries and pumped hydro facilities.
Together, the two tenders are expected to significantly increase NSW’s energy generation and storage capacity. The projects could provide enough electricity to power about 1.26 million homes.
The renewable energy tender will also introduce a new approach that allows projects to combine renewable generation and battery storage in one development. This aims to make it easier for businesses to deliver projects that provide reliable energy for consumers.
The additional renewable energy and storage capacity will help support the electricity network as older coal-fired power stations retire.
The selected projects are expected to be announced by the end of 2026.
The initiative aims to provide more reliable renewable energy, support future electricity needs, and help reduce pressure on energy costs for households and businesses.