Big boost to renewables announced for New South Wales

nsw renewables

National Electricity Market, NSW, renewable energy, renewables, sustainability,


The Australian Government has announced the largest single ever tender for renewable energy in Australia.

This national Capacity Investment Scheme (CIS) tender will target 6 GW of new variable renewable energy projects for the National Electricity Market (NEM). 

The Albanese and Minns Governments have also signed a new deal to deliver more reliable renewables for NSW households and businesses, with at least 2.2 gigawatts (GW) of renewable energy specifically for NSW, enough to power over 1 million households.

An allocation of 300MW for variable renewable energy will also be exclusively dedicated to projects delivered in South Australia.

The NSW agreement builds on the success of the first CIS/NSW Roadmap pilot tender conducted in 2023, which is delivering six battery and virtual power plant projects with more than 1GW of capacity in NSW and creating 400 jobs.

The Albanese and Minns Governments are continuing to work closely together to advance a single combined tender process for generation infrastructure under the CIS and NSW Roadmap from November this year.

The inclusion of NSW projects in this first CIS tender will replace the scheduled Q2 2024 generation Long-Term Energy Service Agreements (LTESA) tender under the NSW Roadmap. Generation projects that are eligible for LTESA tenders will be eligible to participate in the CIS tender.

NSW will proceed with its scheduled Q2 2024 LTESA tender for long-duration storage infrastructure as well as processes to award access rights for NSW’s Central West Orana and South-West Renewable Energy Zones.

Both governments will continue to work together to finalise a Renewable Energy Transformation Agreement.

The Albanese Government’s guarantee of a minimum 300MW in SA is subject to final agreement between the Commonwealth and South Australian Governments. It will encourage investment in strategic electricity reserves, and deliver new renewables projects that ensure improved reliability, to support an orderly transition.

The first round of tenders for Western Australian projects, targeting 500MW of dispatchable power through storage for renewables, will open mid-year, subject to consultation and final agreement. It would be enough to power 45,000 homes.

A market briefing on the May tender will be released in early May outlining the tender process. Tender rounds will run in the NEM approximately every six months until 2027.

Source: © NSW Government 2024

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