AEMO Services has received bids from projects representing more than 15GW of wind, solar and battery capacity for the tender granting access rights for the South West Renewable Energy Zone (REZ).
The New South Wales Government said that the tender offers renewable generation and storage projects in the South West REZ the opportunity to progress their connection to the electricity grid.
The bids received represent almost four times the capacity of 3.98GW available through the tender.
The New South Wales Government said that the strong competition for access rights in the South West REZ will help identify the projects that can be operational in the shortest timeframe, in the best financial interest for New South Wales electricity consumers delivered in a way that best supports local communities.
Projects that are awarded access rights will pay access fees, which will contribute millions of dollars to the local community through the Community and Employment Benefit Program.
Interest has also been high in long-duration storage projects, with proposals in response to the tender totalling more than twice the indicative target of 1GW.
Long-duration storage holds excess available energy and releases it over a period of eight hours or more when required.
These projects help smooth renewable energy supply and ensure a reliable source of electricity when the sun doesn’t shine or the wind doesn’t blow.
The tender was conducted by AEMO Services as Consumer Trustee under the NSW Electricity Infrastructure Roadmap. EnergyCo, as the administrator of the South West REZ access scheme, will award the access rights in early 2025, on the recommendation of the Consumer Trustee.
New South Wales Minister for Climate Change and Energy, Penny Sharpe, said that the very strong interest in this tender shows that New South Wales continues to be a leader in Australia’s energy transition and a highly attractive destination for investment in renewables.
“The interest means that the best projects can be chosen to provide New South Wales with affordable, clean and reliable energy.”
Image credit: Yuri Hoyda/Shutterstock.com.
