NSW is boosting the security and reliability of its energy grid, with Energy Minister Penny Sharpe directing a tender for projects that deliver 500MW of firm capacity.
This is crucial to ensure NSW residents and businesses have reliable power when they need it most, especially during high-demand periods like heatwaves or cold snaps.
The tender will seek bids for firming infrastructure like batteries, gas generation and virtual power plants, that can rapidly supply electricity to the grid or reduce the use of electricity at short notice.
The projects supported by this tender will be capable of powering around 200,000 homes during times of peak demand.
NSW is forecast to face shortfalls of firm capacity for the summer of 2027-28. A range of measures are already underway to meet NSW's energy security target but this new tender will provide greater certainty as NSW transforms its energy system.
The tender will be conducted by ASL (formerly AEMO Services) later this year, and priority will be given to projects that can supply the Sydney, Newcastle and Wollongong areas (where the shortfalls are forecast) during times of peak period.
Successful projects will join those supported in the state's first firming tender in 2023, with the likes of AGL's Liddell battery, Akaysha Energy's Orana battery, Iberdrola's Smithfield battery and NSW's first large scale virtual power plant under the NSW Roadmap being delivered by Enel X.
Minister Sharpe announced the tender while addressing the 2025 Australian Clean Energy Summit in Sydney.
Quote attributable to Minister for Climate Change and Energy Penny Sharpe:
"The Minns Labor Government has always been clear that we will make decisions to keep the lights on and the energy transformation underway.
"This tender will provide greater certainty against future reliability risks.
"We are proactively managing the risks associated with delivering multiple large-scale infrastructure projects at once, as we rebuild our energy system."
Quote attributable to ASL Chief Executive Officer, Nevenka Codevelle:
"The announcement of this tender for firming infrastructure demonstrates the flexibility and adaptability of the NSW Electricity Infrastructure Roadmap in bringing forward additional energy capacity in response to an identified need.
"Firming infrastructure plays a crucial role in supporting the reliability of the NSW electricity system, with this tender calling on projects to come forward that can support the Sydney-Newcastle-Wollongong region by the summer of 2027/28."
