- AEMO has announced results of its 1st renewable energy auction in Australia as part of its multi-year tender roll out
- ACEN Australia won big with its 2 solar projects of 400 MW and 720 MW capacity winning the round, along with 1 wind farm and 1 storage project
- Strike price for these projects were determined as below AUD 35/MWh for solar and under AUD 50/MWh for wind project
The Australian Energy Market Operator (AEMO Services) has announced the results of its 1st competitive renewable energy auction under the 10-year schedule of rolling tenders, selecting 1.395 GW renewable energy generation projects, including 1.12 GW solar for a strike price of less than AUD 35 ($23.23)/MWh.
Of the 3 renewable energy projects selected, 2 are solar projects, both owned by ACEN Australia namely 400 MW Stubbo Solar Farm in Central West Orana Renewable Energy Zone (REZ) and 720 MW New England Solar Farm in New England REZ in New South Wales.
The 275 MW Coppabella Wind Farm is a non-REZ project of Goldwind Australia and the 50 MW/400 MWh Limondale Battery Energy Storate System (BESS) facility of RWE Renewables Australia in South West REZ. The renewable energy generation capacity of 4,009 GWh and the lithium-ion project offer a continuous discharge capacity of at least 8 hours.
For wind projects, the strike price determined is below AUD 50/MWh. AEMO Services Chair Dr Paul Moy said, the incentive of long-term energy service agreement (LTESA) offered through the tender process was working as expected. These are ‘some of the lowest prices ever secured through similar tender processes in Australia’.
“The generation LTESA strike prices are around 40% lower than the levelized cost of energy and an equivalent Contract for Difference and are amongst the lowest prices secured in any similar tender anywhere in Australia. This means NSW consumers will pay less for new generation infrastructure,” added Moy.
All the selected projects are expected to start operations and deliver generation capacity by 2025/26. Moy said the build trajectory was one of the key factors in AEMO’s decision making. Other factors included the project’s social license commitments along with financial value to NSW customers.
In Oct. 2022, Australia’s New South Wales had opened its maiden tender round under NSW Electricity Infrastructure Roadmap, for Central West Orana Renewable Energy Zone (CWO REZ), as part of plans to roll out competitive tenders to be launched within the next 10 years (see NSW Launches Maiden Auction For RE & Storage).