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ASL unveils strategy for ambitious NSW energy transition

19 Aug, 2025
Renewables surge, solar and wind dominate



The NSW Consumer Trustee, ASL (AusEnergy Services Ltd, formerly AEMO Services), has unveiled two major publications that lay the groundwork for New South Wales’ ambitious energy transition: the 2025 Infrastructure Investment Objectives (IIO) Report and the inaugural NSW Generation Investment Outlook (NSW GIO).

Together, these documents set a comprehensive roadmap for investors, developers and industry to navigate the next two decades of energy transformation, providing both a long-term strategy and a detailed analysis of the current project pipeline that will drive NSW’s transition.

The 2025 IIO Report marks a bold shift in approach, as ASL selects a new, ambitious development pathway.

This strategy aims for a substantial increase in energy infrastructure, with targets designed to exert downward pressure on wholesale electricity prices and deliver enduring benefits for NSW consumers.

As part of this drive, ASL is calling for promising early-stage and high-quality projects to leverage its competitive tender program and accelerate the delivery of new energy capacity, unlocking benefits for consumers, host communities and stakeholders.

Key features of the IIO Report include a target of 16GW of new generation infrastructure by 2030, well above the legislated 12GW minimum.

The report further sets a goal for 42GWh of new long-duration storage by 2034, exceeding the required 28GWh.

In line with a recent directive from the NSW Minister for Energy, ASL will initiate an additional tender for firming infrastructure — including storage, demand response and aggregated batteries — commencing in Q4 2025.

This infrastructure must be capable of supporting the Sydney-Newcastle-Wollongong region during peak periods by 2027-28.

Additional, larger tenders for long-duration storage are planned for 2026 and 2027, with the recommencement of infrastructure tenders for generation scheduled for Q2 2026.

For the first time, the IIO Report also opens new pathways for generation and storage projects to collaborate with NSW network service providers and EnergyCo on proposals for network projects within Renewable Energy Zones — potentially bringing energy to consumers faster.

Complementing the IIO Report, the NSW GIO delivers an analysis of the project pipeline and forecasts how projects might progress through approvals, financing and construction.

The report reveals a robust pipeline of over 50GW of proposed generation capacity in NSW, with 12.5GW of projects already holding development approval.

While there is enough capacity in the pipeline to meet legislated minimum requirements, current project lead times are not rapid enough to meet the 16GW target unless key bottlenecks are resolved.

The GIO is set to be updated regularly to monitor development progress, identify opportunities and challenges, and serve as a practical tool for unlocking barriers to delivery.

ASL CEO Nevenka Codevelle described the new IIO report as “a call to action – for more energy infrastructure to be delivered, sooner.”

“Since we first published this report in 2021, the momentum has continued to build towards meeting NSW’s legislated minimum investment objectives,” said Codevelle.

“What we’re finding now is that to maximise consumer benefits, we need to target a greater infrastructure build both before and after 2030.”

Reflecting on the NSW Generation Investment Outlook, she added: “From our inaugural NSW GIO we know interest in the project pipeline and investment exists, but the pace of development needs to increase.

“It’s our job as the state’s independent Consumer Trustee to use the IIO report and our tenders to help meet this challenge.”

Codevelle emphasised the need for a decisive shift in approach, stating: “The ambitious development pathway requires a step change in how both proponents and the broader industry accelerate development, as well as the way ASL uses its tenders for Long-Term Energy Service Agreements to incentivise fast-tracking of quality projects.”

“We’ve always had a focus on financial value, and this won’t change. But what we’ve learned is that the projects with local community support and a clear approach to managing delivery risk are more likely to be delivered on time.

“We’re calling on developers to bring forward these projects, including those at an early stage.”

With these publications, ASL has signalled a clear intent: accelerating infrastructure investment, tackling bottlenecks, and aligning industry momentum with consumer interests — to cement New South Wales as a leader in Australia’s energy transition.

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