Green light for NSW capacity projects to address Eraring closure

Three battery storage projects and three Virtual Power Plants (VPPs) have been announced winners in the Federal-backed NSW Firming Tender.

Observations:

• The >1GW total capacity is almost triple the initial 380MW when launched, and greater in size (930MW) when subsequently bolstered by the Capacity Investment Scheme (CIS).
• A BESS project near Wellington was successful, despite the intended focus on the Sydney-Newcastle-Wollongong region.
• Support for a VPP could reflect the government’s appetite for innovation.
• Speed to market was critical for success in this tender.

The results suggest the scope is flexible to accommodate valuable capacity if it is fast-to-market and in the right location. Stride also finds projects accelerate by participating in these tender processes and can get a boost (and some feedback) even if they don’t win this time round.  

AEMO Services Ltd is interested in meeting with proponents to discuss their projects for future tenders.