NSW targets 2.5GW of new renewables in major energy rollout

It is the biggest renewable energy tender ever launched in the state.

New South Wales has launched its largest renewable energy procurement program to date, aiming to fast-track the state’s transition away from coal-fired power.

Under Tender 8, the state is seeking 2.5 gigawatts of new renewable energy generation, enough to power about one-third of NSW homes. It is the biggest Long-Term Energy Service Agreement tender under the state’s Electricity Infrastructure Roadmap.

The independent Consumer Trustee, AusEnergy Service Limited (ASL), will run the process.

Once awarded, the projects are expected to deliver a major share of NSW’s renewable energy goals, contributing to as much as 90 per cent of the state’s 12-gigawatt target by 2030.

At the same time, Tender 9 will seek up to 12 gigawatt-hours of long-duration energy storage, including large-scale batteries and pumped hydro. The storage is intended to improve grid reliability by storing excess renewable energy and releasing it during peak demand or low generation periods.

The Minns Labor Government says NSW is already on track to exceed its long-duration storage targets for 2030 and 2034, and is now aiming to increase capacity by 50% beyond current benchmarks to support a more stable and resilient electricity system.

Together, Tenders 8 and 9 are expected to add enough capacity to power around 1.26 million homes and strengthen supply as coal plants retire.

The government said the combined impact of Tenders 8 and 9 will help ensure reliable electricity supply as coal-fired power stations are phased out, whilst also placing downward pressure on energy prices amid cost-of-living concerns.

Long-duration storage technologies eligible under the program include large-scale batteries and pumped hydro projects.

Tender 8 will also introduce a new hybrid project model, allowing solar or wind projects to be paired with battery storage in a single development.

Project outcomes are expected to be finalised by late 2026.