AEMO receives 3.1GW of power generation applicants in latest round of NSW energy tenders

A 70MW solar project in New South Wales. Image Nextracker.

The Australian Energy Market Operator (AEMO)’s subsidiary, AEMO Services, has reported that companies have submitted bids for 3.1GW of power generation in the state of New South Wales (NSW), more than three times the target of 950MW put forward in the initial tender.

AEMO Services is responsible for managing tenders for long-term energy service agreements (LTESA) and access to renewable energy zone access rights in NSW, and the body’s leaders were encouraged by the repeated interest in new state power projects demonstrated by the private sector.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

“The strong support is further evidence that the LTESA provided through our tender process addresses a key market risk that might otherwise delay or discourage investors from participating in the transition,” said Paul Moy, chair of AEMO Services.

“We designed our processes to minimise time and effort for repeat bidders, allowing participants to sharpen their pencils and return with an improved proposition,” added Moy. “At the same time, it’s a positive sign that a number of new entrants have engaged with the process, demonstrating confidence in our systems and product and an evolving pipeline of projects.”

While AEMO Services did not specify which companies nor projects were involved in this round of the tendering process, it did note that, in addition to the power generation projects submitted, a number of groups proposed storage projects. As in the case of power generation, the submitted capacity far exceeded expectations, with investors proposing 1.6GW of new storage projects, compared to a target of just 550MW.

It is likely that many, if not all, of these power generation projects will use renewable power, considering both the clean energy goals of the NSW government and recent precedent.

In 2020, the state government released its Electricity Infrastructure Roadmap, a 20-year plan to support 12GW of new electricity generation and 2GW of new storage solutions, backed by the private sector. This year, the government has operated three power tenders under this programme, covering energy infrastructure, power generation and long-term energy storage, and today’s news regards projects submitted under the third round of tenders.

The first of this year’s tenders concluded in May, which saw AEMO award tenders to 1.12GW of solar capacity, alongside the 50MW/400MWh Limondale battery energy storage system, as NSW looks to increase its renewable generation capacity.

“We have the flexibility to only select the projects that represent the best value to consumers,” said AEMO Services’ executive general manager Paul Verschuer. “If we aren’t satisfied that there are enough competing projects we can alter our plan accordingly and tender for a higher volume in future rounds.”

“The competing bids will now undergo an assessment for non-price criteria such as deliverability, and benefits to local communities and First Nations people, after which we’ll assess them closely to determine the most valuable projects for consumers,” added Verschuer. AEMO Services plans to announce successful bids under this tender by the end of this year.

Read Next

July 19, 2024
PV Lighthouse has secured AU$1.97 million from ARENA to aid the development of its digital twin software for utility-scale solar PV projects.
July 18, 2024
US-based off-grid solar product manufacturer d.light has secured US$176 million to support its PayGo consumer loan offering in three African countries.
July 18, 2024
On Wednesday (17 July), the Tasmanian government in Australia removed a ‘speed limit’ measure that has prevented state-owned utility Hydro Tasmania from developing large-scale renewable energy projects, such as solar, without a "cumbersome" Parliamentary process.
July 18, 2024
Enel Green Power Australia has acquired a 1GW solar-plus-storage project in the Central-West Orana REZ in New South Wales from RES Group.
July 16, 2024
Sun Cable has obtained its principal environmental approval its Australia-Asia PowerLink interconnector, set to unlock 20GW of solar.
July 16, 2024
Australia’s Clean Energy Council (CEC) has been nominated by the Clean Energy Regulator (CER) to be the solar module and product listing body under the small-scale renewable energy scheme (SRES).

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
July 31, 2024
1:00 PM (BST) / 2:00PM (CEST)
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia
Solar Media Events
October 8, 2024
San Francisco Bay Area, USA