SYDNEY, NSW – The New South Wales Government has launched its largest renewable energy tender in history, seeking 2.5 gigawatts (GW) of new generation capacity and up to 12 gigawatt-hours (GWh) of long-duration energy storage. The announcement, made on May 20, 2026, marks a critical step in the state’s transition away from coal-fired power and aims to provide enough energy to power approximately 1.26 million NSW homes.
This two-part tender, designated Tender 8 and Tender 9 under the NSW Electricity Infrastructure Roadmap, is designed to accelerate the development of renewable energy projects and enhance grid stability as the state’s coal-fired power stations approach retirement. Minister for Climate Change and Energy, Penny Sharpe, stated that this initiative underscores the government’s commitment to delivering cheaper and more reliable power for households and businesses.
Driving New Generation and Storage Capacity
Tender 8 is specifically targeting 2.5 GW of new renewable energy generation, which includes both standalone wind and solar projects, as well as hybrid generation projects combining wind or solar with battery storage. This represents the largest generation Long-Term Energy Service Agreement (LTESA) tender ever undertaken in NSW. Projects with a minimum capacity of 30 megawatts (MW) are eligible, with a preference for those on track to commence operations before the end of 2029.
Concurrently, Tender 9 is seeking up to 12 GWh of long-duration storage projects. These are expected to deliver approximately 1.5 GW of large-scale battery or pumped hydro capacity. To qualify, projects must have a minimum power capacity of 5 MW and be capable of continuous energy dispatch for at least eight hours. These storage solutions are deemed critical for grid reliability, ensuring energy can be released on demand, particularly during periods of high demand or when renewable generation is low.
“Tender 8 alone will deliver enough energy to power about one-third of homes in NSW, marking a major step forward in our plan to future-proof NSW’s electricity system. Tender 9 ensures we can store renewable energy, so it can be released on demand when needed, making our grid more stable and reliable.” — NSW Minister for Climate Change and Energy, Penny Sharpe.
Strengthening the Grid and Lowering Costs
The tenders are being administered by AusEnergy Services Limited (ASL), the independent NSW Consumer Trustee. The successful projects, once awarded, are expected to push NSW towards achieving up to 90 per cent of its 12 GW renewable energy generation target by 2030. This significant injection of new capacity is crucial for maintaining a secure and affordable electricity supply as the state phases out its reliance on coal. The shift towards a renewable-dominated grid, firmed by substantial storage, is widely considered the least-cost pathway to meet future energy needs while adhering to net-zero targets.
For NSW households, this initiative has direct implications for future electricity bills. By increasing the supply of low-cost renewable energy and providing robust storage to manage peak demand, the government aims to put downward pressure on energy prices. This complements existing efforts to provide Energy Bill Relief in Australia 2026: Understanding the End of Universal Federal Payments and State Support and offers a long-term structural solution to energy affordability.
Tender Timeline and Market Impact
Registrations for both Tender 8 and Tender 9 are scheduled to close towards the end of June, with the bid submission window closing on July 6, 2026. The announcement of successful bids is anticipated by late 2026. This rapid timeline highlights the urgency with which NSW is moving to secure its energy future.
The introduction of a new hybrid generation LTESA product in Tender 8 is a notable development, allowing applicants to combine generation and storage in a single project. This reflects the evolving market and technological advancements in integrated energy solutions, making it easier for investors to develop projects that offer comprehensive benefits to consumers.
This tender builds on previous successes, including a recent firming tender that secured 2,128 MWh of energy storage to address summer capacity shortfalls. As NSW transitions its generation projects back to the Roadmap tenders following the completion of the Commonwealth’s Capacity Investment Scheme Tender 7, these state-led initiatives become even more vital. Consumers looking to optimise their energy consumption can also explore options like How to Compare and Switch Electricity Providers in Australia 2026: Your Essential Guide to Beating Rising Bills to take advantage of market changes.
These tenders represent a substantial commitment to transforming NSW’s energy landscape, promising a more resilient, reliable, and affordable electricity grid for years to come.