In a major push to strengthen its clean energy transition, the New South Wales (NSW) government has launched its sixth competitive tender under the Electricity Infrastructure Roadmap. The tender targets 1 GW of long-duration energy storage projects, each capable of supplying power continuously for at least eight hours, to ensure greater grid stability as coal-fired power stations are phased out.
The initiative is being managed by AEMO Services, the body responsible for implementing the tendering process on behalf of the NSW government. Successful bidders will be eligible for Long-Term Energy Service Agreements (LTESAs)—government-backed contracts offering revenue stability and protection against market volatility, aimed at de-risking investment in large-scale storage infrastructure.
The Tender 6 round is seeking projects with a minimum total storage of 8 GWh, all expected to be operational by 2034. NSW has estimated it will need 2 GW / 16 GWh of long-duration storage by 2030, and a total of 28 GWh by 2034, to cover the gap left by retiring coal assets.
According to Nevenka Codevelle, Executive General Manager at AEMO Services, this tender is a crucial step toward achieving the state’s 2030 storage objectives.
“We’re now looking ahead to our next long-duration storage tender for assets that commit to be operational by 2034, scheduled to open before 30 June 2025. In particular, we want to see more short lead time projects that contribute to our 2030 minimum objective.”
Nevenka Codevelle, Executive General Manager at AEMO Services
The tender is open to projects that can either connect to existing transmission and distribution infrastructure or to new infrastructure within NSW’s five designated Renewable Energy Zones (REZs)—provided the project has secured an access right.
Tender 6 builds on the success of the previous round. In Tender 5, which concluded in February, three projects were awarded LTESAs: two battery energy storage systems and one pumped hydro project, collectively offering 1.03 GW of capacity and 13.79 GWh of storage.
“Tender 5 was the most successful long duration storage tender to date,” Codevelle stated. “It demonstrates the strong market interest to invest in long-duration storage projects and we’re excited to see more in Tender 6.”
Registrations for Tender 6 are now open and will close on 29 May 2025, with final project bids due by 10 June 2025. The evaluation process will follow a two-stage framework, first assessing the project’s deliverability, social licence, grid impact, and proponent quality, followed by a financial evaluation focused on its value to NSW electricity consumers.
AEMO Services said the broader tendering program has already supported projects expected to deliver over 2.4 GW of generation capacity, 18 GWh of long-duration storage, and nearly 3 GWh of firming capacity, contributing significantly to NSW’s evolving energy landscape.
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