NSW Launches Record 2.5 GW Renewable Tender and 12 GWh Storage Bid

Context The state’s Electricity Infrastructure Roadmap calls for a 12 GW renewable capacity target by 2030. Yesterday, climate change and energy minister Penny Sharpe announced two new tenders that together could deliver up to 90 % of that goal. Independent trustee AusEnergy Service Limited will run the competitive process.

Key Facts - Tender 8 seeks 2.5 GW of new renewable generation, enough to power roughly one‑third of NSW households. The contract introduces a Hybrid Generation Long‑Term Energy Service Agreement, allowing solar or wind projects to bundle battery storage. - Tender 9 requests 12 GWh of long‑duration storage, a capacity 50 % above the state’s 2030 benchmark. Storage must provide at least four hours of discharge at commercial operation. - The assessment framework weighs financial value and system benefits at 49 %, with deliverability, organisational capacity and social value each scoring 17 %. - Projects delivering power before 31 December 2029 receive preferential treatment. Wind and hybrid projects that generate outside daylight hours are expected to score high on financial value. - Successful bidders cannot hold a Commonwealth Capacity Investment Scheme agreement simultaneously, forcing a choice between federal and state support. - Minister Sharpe said the tenders will “deliver cheaper, more reliable power for households and businesses” and will make the grid more stable by storing renewable energy for on‑demand release.

What It Means If awarded, the 2.5 GW of generation could push NSW to 90 % of its 12 GW renewable target, dramatically cutting reliance on fossil fuels. The 12 GWh storage bid addresses a critical gap: the ability to hold excess solar and wind output for use during peak demand or low‑generation periods. By bundling generation and storage, the Hybrid LTESA model reduces project complexity and aligns financial incentives with system reliability.

The tenders also signal a shift toward state‑led procurement, moving projects away from the national Capacity Investment Scheme toward locally tailored contracts. This could accelerate investment in wind farms and hybrid solar‑battery sites, especially those capable of delivering power after sunset.

Looking Ahead Watch the award announcements slated for late 2026, which will reveal the mix of solar, wind and storage projects set to reshape NSW’s energy landscape.