NSW’s inaugural renewable energy tender awards 1.4 GW

New South Wales has selected 1.4 GW of wind, solar and battery storage projects in its maiden auction for renewable energy capacity aimed at helping the Aussie state move away from coal-fired generation.

Projects awarded through the tender will facilitate the creation of large renewable energy zones (REZ) and attract investments worth AUD 2.5 billion (USD 1.66bn/EUR 1.51bn), the state government announced on Monday following their review by the Australian Energy Market Operator (AEMO). The results were released a few days after the closure of the Liddell station, Australia’s oldest coal-fired power plant.

ACEN Corp (PSE:ACEN), the listed energy platform of Philippine conglomerate Ayala Group, is the biggest winner in the procurement, grabbing long-term energy service agreements (LTESAs) for 1.1 GW of the overall capacity. The list also includes Goldwind Australia and RWE Renewables Australia.

The capacity is expected to become operational at the time of the expected closure of the Eraring thermal power station as early as 2025 to 2026.

“These projects will fill the gap that will be left with the planned closures of coal-fired power stations in the coming decade,” said Minister for Energy Penny Sharpe.

The tender was held under the state’s Electricity Infrastructure Roadmap, which is intended to support the deployment of 12 GW of renewable and 2 GW of long-duration storage capacity by the end of the decade. The twice-yearly auctions will be held every six months for 10 years.

The inaugural auction, launched in October 2022, lured bids for more than 5.5 GW of wind and solar generation and over 2.5 GW of long-duration energy storage capacity. The shortlisted proposals totalled 4.3 GW.

(AUD 1.0 = USD 0.663/EUR 0.603)

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