NSW is taking steps to strengthen the security and reliability of its energy grid with a new tender for projects that will deliver 500 megawatts of firm capacity. This effort aims to ensure residents and businesses have access to reliable power during times of high demand, such as heatwaves or cold weather.
The tender calls for bids on firming infrastructure, including batteries, gas generation, and virtual power plants. These projects can quickly supply electricity or reduce power use when needed. The capacity gained from these projects could power around 200,000 homes during peak demand periods.
Forecasts show NSW may face a shortfall in firm capacity by the summer of 2027-28. Several measures are already in place to meet energy security targets. This new tender will add certainty to the state’s energy transition.
The tender will be managed by ASL (formerly AEMO Services) later this year. Priority will go to projects that can serve the Sydney, Newcastle, and Wollongong areas, where shortfalls are expected during peak times.
Successful projects will join earlier ones supported by the first firming tender held in 2023. Examples include the Liddell battery by AGL, the Orana battery by Akaysha Energy, the Smithfield battery by Iberdrola, and NSW’s first large-scale virtual power plant delivered by Enel X under the NSW Electricity Infrastructure Roadmap.
ASL’s Chief Executive Officer highlighted the importance of this tender in adding flexible and adaptable energy capacity. The firming infrastructure will support electricity reliability in key regions as NSW prepares for future energy needs.