The government of New South Wales (NSW) has shortlisted 16 projects for its first renewable tender auction in Australia. The projects’ combined power generation and long-term storage capacity total more than 4.3 GW. They were selected in line with the NSW Electricity Infrastructure Roadmap, which aims to build 2 GW of duration storage and at least 12 GW of renewable capacity in the state by 2030.
Furthermore, AEMO Services will now assess the final projects’ potential to provide financial value to NSW businesses and households. Reportedly, nearly 1.6 million homes in the region will be able to be supplied by the projects that made the short list. Following the assessment, the applicants of the projects targeted will be given long-term energy service agreements to assist in the modernisation of the state’s energy grid. The deadline for the shortlisted projects to submit their financial value bids is February 10, 2023.
Earlier this month, Shell Energy acquired the development rights to a 500 MW battery energy storage system project in Australia. Under the terms of the agreement, Shell would be granted the right to build, own, and operate the Wallerawang 9 Battery project (FID). The former Wallerawang Power Station site near Lithgow, New South Wales (NSW), would be used for the project’s construction.
REGlobal’s Views: With more such auctions being planned in the near future, the plan to switch NSW’s grid from fossil fuels to renewables is moving at promising pace. However, the implementation of these projects should also happen in a timely manner before the retirement of the planned coal power plants, to ensure adequate power supply.