NSW Electricity Infrastructure Roadmap’s 4th Tender Round

• AEMO Services seeks to procure 3,000 GWh/year of renewable energy generation projects under the 4th tender round 
• Winners of this competitive round under NSW Electricity Infrastructure Roadmap will secure LTESA 
• Projects located in the NSW intending to connect to existing transmission and distribution infrastructure are eligible to enter the fray 

The Australian Energy Market Operator (AEMO) Services is officially inviting bids for the 4th tender of the New South Wales (NSW) Electricity Infrastructure Roadmap, seeking renewable energy generation projects. 

Sought to secure 3,000 GWh/year electricity supply, the winning projects will enter into Long-Term Energy Service Agreements (LTESA) that are aimed at providing necessary insurance for the facilities against future price risk to help fast-track project development. 

Projects will be judged based on their social license commitments, deliverability and proponent quality, along with financial value assessment. 

This round is open to eligible renewable energy generation projects located across the NSW interested in connecting to existing transmission and distribution infrastructure. Projects returning from previous tender rounds with the same project will be able to participate in this round. 

Project bids opened on October 31, 2023 and will be admitted till December 10, 2023. Financial bids will be invited in February 2024. Final winners will be announced in June 2024, according to the tender schedule on AEMO's website.  

Conducted as part of NSW's plans to launch renewable energy tenders over a period of 10 years under the roadmap to transition away from coal-fired generation, the aim is to add 12 GW renewable energy capacity and 2 GW of long-duration storage by 2030. 

AEMO completed the 1st tender earlier this year. It auctioned 1.4 GW renewable energy projects with under AUD 35/MWh strike price for solar in the Central West Orana Renewable Energy Zone (REZ) (see Australia Completes 1st Roadmap Tender Process). 

The 2nd tender was for firming infrastructure, followed by the 3rd tender round for 950 MW wind and solar generation, and 550 MW long duration storage which was oversubscribed (see Australian RE & Storage Tender Oversubscribed). 

AEMO now says it won't yet release the access rights for the Central West Orana REZ as it needs more time to consider the detailed feedback received from generation projects in the REZ. 

"We expect that tenders held in the second, third and fourth years will be the most competitive, as access is opened to additional REZs across the State, and as the market continues to deliver new solutions to the energy transition," said AECO Services General Manager Paul Verschuer.