In its capacity as the NSW Consumer Trustee, AEMO Services has officially opened submissions for its inaugural competitive tender round as part of the NSW Electricity Infrastructure Roadmap transition away from coal-fired generation.
AEMO Services Chair Paul Moy said that the tender marked an important step in the NSW Government’s plan to accelerate private investment in new sources of generation and storage.
“These tenders are designed to benefit both investors in cost efficient projects and NSW electricity consumers through a competitive process for renewable energy and storage.
“The competitive tender means that the mix and location of projects that will support our investment objectives will be shaped by the market.”
Dr Moy said that early interest from projects wishing to bid in the tender had been strong.
“Over the four weeks since registrations opened, we have strong interest and registrations from projects located across NSW.
“The level of interest is a very encouraging sign that the Roadmap will stimulate significant investment. The flexibility provided by a continuing tender process should be of great assistance in generating a cost-effective energy transition in NSW.”
AEMO Services Executive General Manager Paul Verschuer said that sufficiently advanced projects from across NSW which are connecting to existing transmission infrastructure are encouraged to participate, with the final date for bids set at 28 October.
“Projects can register and participate until 28 October. Following this, projects will proceed through a rigorous assessment process and shortlisted proponents will be invited to submit a financial bid in December.” Mr Verschuer said
“For those yet to engage with us, it’s not too late to do so. Registration is a valuable step even for projects which might not end up proceeding to this tender, or those which ultimately aren’t successful in this round. The next tender is only ever six months away so there is every opportunity for projects to participate. There is no doubt that in this environment proponents will want to bring their energy to market faster and we have designed a process that gives them the flexibility to do so without incurring major costs.
“This is the first of a ten-year schedule of rolling tenders which will incentivise an expected $32 billion in private capital, and it represents an immense source of ongoing opportunities for investors and developers. We want to see projects brought to market and delivering electricity sooner.”
Mr Verschuer said the commencement of the tender round was also a significant development for the New South Wales economy.
“The Electricity Infrastructure Roadmap is the largest program of its kind ever implemented in NSW.
“It will generate considerable economic opportunities for workers, in local industry and across our supply chains.”
“In the space of a decade we’ll create a new electricity network, based on renewables, that is cheaper, greener and more reliable than our current system.”
