New South Wales has today, May 20, 2026, launched its most ambitious renewable energy tenders to date, seeking to contract 2.5 GW of new generation capacity and an unprecedented 12 GWh of long-duration energy storage. These dual tenders, designated as Tender 8 and Tender 9 under the NSW Electricity Infrastructure Roadmap, are designed to accelerate the state’s transition away from coal-fired power and secure a more stable, affordable electricity supply for consumers.
The announcement by NSW Climate Change and Energy Minister Penny Sharpe marks a critical step towards meeting the state’s ambitious renewable energy targets, particularly as major coal generators like Eraring Power Station approach their retirement dates. The tenders aim to significantly boost NSW’s clean energy portfolio, with Tender 8 alone expected to enable the state to achieve up to 90% of its 2030 renewable energy generation target.
Driving Generation and Storage Capacity
Tender 8, administered by independent consumer trustee AusEnergy Service Limited (ASL), is seeking 2.5 GW of renewable energy generation capacity. This represents the largest generation Long-Term Energy Service Agreement (LTESA) tender ever conducted in NSW. Notably, this tender introduces a new hybrid generation LTESA, specifically designed to accommodate projects that combine solar or wind generation with integrated battery storage. Projects with a minimum capacity of 30 MW are eligible, with ASL prioritising those on track to commence commercial operations before the end of 2029.
Running concurrently, Tender 9 is focused on securing up to 12 GWh of long-duration storage projects. This tender is projected to deliver approximately 1.5 GW of large-scale batteries or pumped hydro, with successful projects required to have at least 5 MW of power capacity and a minimum of eight hours of energy storage. These critical storage assets are expected to be operational by 2034, providing essential grid firming and reliability services.
Minister Sharpe emphasised the dual purpose of these tenders:
“Tender 9 ensures we can store renewable energy, so it can be released on demand when needed, making our grid more stable and reliable.”
This proactive approach is crucial for managing the intermittency of renewable generation and ensuring a consistent power supply, especially during peak demand periods. For households looking to manage their own energy use, understanding how to How to Avoid Peak Demand Charges and Slash Your Time-of-Use Electricity Bills in Australia in 2026 remains vital as the grid evolves.
Context of NSW’s Energy Transition
The launch of Tenders 8 and 9 follows closely on the heels of NSW’s seventh infrastructure tender, which recently secured 532 MW of firming projects, delivering 2,128 MWh of storage capacity. These earlier projects are contracted to be operational by November 2027 and aim to address a forecast supply shortfall during the summer of 2027-28.
NSW has set ambitious stretch targets for its energy future, aiming for 16 GW of new generation by 2030 (significantly above the legislated 12 GW minimum) and 42 GWh of new long-duration storage infrastructure by 2034 (well above the 28 GWh minimum target). The current tenders are a substantial step towards these goals.
The state’s energy roadmap is designed to replace ageing coal-fired power stations with a diverse portfolio of renewables and storage. This shift is not merely about environmental targets but also about ensuring the long-term affordability and security of electricity for millions of Australians. The Australian Energy Market Operator (AEMO) consistently highlights the need for significant transmission and generation investment to support this transition, as outlined in its Integrated System Plan.
Project Details and Timeline
Registrations for both Tender 8 and Tender 9 will close on June 22, 2026, with the bid submission window closing on July 6, 2026. Successful projects are expected to be announced in the final quarter of the year.
Eligible storage technologies for Tender 9 include chemical battery storage, thermal storage, pumped hydro, hydrogen, and compressed air energy storage. The focus on long-duration storage is critical for providing stability as the grid integrates higher levels of intermittent renewable energy. This strategic investment will play a key role in preventing price spikes and ensuring reliable power during periods of low wind or solar generation. For homeowners considering their own energy independence, understanding the landscape of Home Battery Rebates Available in Australia 2026 can complement these large-scale grid developments.
Tender Overview
| Tender | Focus | Capacity Sought | Operational By | Minimum Requirements | Key Feature |
|---|---|---|---|---|---|
| Tender 8 | Renewable Generation | 2.5 GW | End of 2029 (prioritised) | 30 MW minimum | New hybrid generation LTESA |
| Tender 9 | Long-Duration Storage | 12 GWh (approx. 1.5 GW) | 2034 | 5 MW power, 8 hours storage minimum | Diverse storage technologies eligible |