The New South Wales government has awarded contracts to six new battery projects, positioning the state to exceed its energy storage targets for the future.
The long-duration storage (LDS) projects will strengthen the state’s energy grid and provide enough low-cost renewable energy to power one third of Sydney’s households for a day. Several projects can also provide essential system services, including frequency and voltage control.
New South Wales has now contracted enough capacity to meet its minimum objective of delivering 2 gigawatts of LDS by 2030 and 28 gigawatt hours by 2034. The state has the most battery projects in Australia with over 200 projects either under construction or in the planning pipeline.
The projects are:
Great Western Battery in Wallerawang, storing 3,500 megawatt hours (MWh)
Bannaby Battery Energy Storage System, in the Southern Tablelands (BW ESS) storing 2,676 MWh
Bowmans Creek Battery Energy Storage System, storing 2,414 MWh
Armidale East Battery Energy Storage System storing 1,440 MWh
Kingswood Battery Energy Storage System, near Tamworth storing 1,080 MWh
Ebor Battery Energy Storage System, near Armidale storing 870 MWh
All projects are due to be completed by 2030.
NSW energy minister Penny Sharpe said: “These six big batteries mean we’re on track to smash our storage targets, harvesting the sun and the wind, so we can power NSW around the clock and put downward pressure on prices.
“We’re not stopping here – NSW will support more projects, so we’re ready for a grid powered by renewable energy, supported by gas.”
This tender was run by ASL, the independent Consumer Trustee. It is the state’s largest tender for long-duration storage to date, both in terms of total storage capacity and the number of contracts.
ASL noted that total cost of the long-term energy security agreements (LTESAs) for this round’s bids have fallen compared to previously awarded projects with a 14-year maximum terms.
“It’s encouraging to see that proponents are continuing to utilise and value the flexibility of the LTESA product to suit their project’s needs,” ASL CEO Nevenka Codevelle said.
“These agreements also deliver value to consumers by unlocking investment into additional capacity that can reduce price volatility.
“We’re about to see the first LDS projects contracted through these tenders come online. These are eight-hour-plus storage projects that would not otherwise have reached financial close or delivered energy for NSW consumers.”
ASL will launch the next LDS tender in the second quarter of 2026, seeking 12 gigawatts hours of projects, followed by a further 12 gigawatts hours in 2027.
These tenders will seek more projects that can be operational by 2030, in addition to longer lead time projects that can be operational by 2034.
