AEMO Services

As part of the NSW Electricity Infrastructure Roadmap, long duration storage has a critical role to play in maintaining a secure, reliable and low-emissions electricity system. The legislated minimum objectives set a target of 2GW and 16 GWh of energy storage to be in place by 2030 and 28 GWh by 2034. These figures are based on NSW Government modelling to provide a conservative estimate of the system’s reliability needs as coal-fired generation retires and renewable energy capacity grows. But it’s important to note: these are minimum objectives, not maximum limits. In our Infrastructure Investment Objectives (IIO) Report, AEMO Services assesses the evolving needs of the system and, if the need for more long duration storage is identified, we have the ability to procure above these minimums. Our role is to ensure that investments made through our competitive tenders are aligned with the long-term needs of the electricity system and the communities we serve. Learn more about how we’re supporting the delivery of the NSW Electricity Infrastructure Roadmap via our website. #renewableenergy #energytransition #energystorage 

AEMO Services has awarded 18 Long Term Energy Service Agreements (LTESAs) to successful projects across five tenders under the NSW Electricity Infrastructure Roadmap, helping to accelerate the development of generation, storage, and firming projects in NSW. Once operational, the 18 projects are expected to contribute in excess of 2,400 MW of new generation, 1,000 MW of firming, and 1,600 MW of long-duration storage for the benefit of NSW electricity customers.    #renewableenergy #energytransition #energystorage #generation 

Congratulations to Iberdrola Australia on successfully commissioning Flyers Creek Wind Farm. The project is the first in NSW with an LTESA to reach commercial operations. Its 38 turbines will deliver up to 140 MW of clean energy to the grid.   AEMO Services’ General Manager Commercial, Thimo Mueller said “This is a significant milestone for the NSW Electricity Infrastructure Roadmap. The LTESA product and tender process are designed to accelerate investment and accommodate projects across all stages of development”   “The Flyers Creek project was at an advanced development stage when the LTESA was awarded. Iberdrola made an investment decision knowing they would be eligible for a Generation LTESA in the future. It was an important policy principle not to slow down project development due to policy uncertainty related to the NSW Electricity Infrastructure Roadmap. "In recent tenders, the projects awarded are in earlier stages of development. The Consumer Trustee accepts this risk profile where it supports meeting the objects of the Electricity Infrastructure Investment Act.”   For more information on LTESAs, visit the AEMO Services website.   #renewableenergy #energytransition #windfarm 

AEMO Services will call for Long Duration Storage projects to participate in the next NSW Roadmap Tender, scheduled to open in Q2 2025.     Projects with short lead times able to contribute towards NSW’s minimum objectives of 2 GW long duration storage by 2030, and projects with longer lead times able to contribute to the minimum objective of 28 GWh by 2034 will be encouraged to come forward.     To prepare for the upcoming NSW Roadmap Tender 6 for Long Duration Storage LTESAs, you can find important market guidance in our Market Briefing Note on Tender Round 5: https://lnkd.in/gMARGgu5 #renewableenergy #energytransition

Meet the Schoff family; fourth generation farmers who have diversified their income stream as host landowners for the Culcairn Solar Farm, through a partnership with Neoen Australia.   The Culcairn Solar Farm was awarded a Long Term Energy Service Agreement under the NSW Roadmap Tender Round 3 in December 2023 and will provide 440 MWp of generation capacity once it is fully operational.   The project is a great example of partnership between Australia’s agricultural and energy sectors, delivering financial benefits to farmers and the local communities living in and around the solar farm. #renewableenergy #solar #energytransition

The Minister for Climate Change and Energy has announced the outcome of Capacity Investment Scheme (CIS) Tender 2 for WEM Clean Dispatchable Capacity.   The four successful battery projects will supply 654 MW of capacity, capable of discharging about 2,600 MWh to the Western Australia Wholesale Electricity Market (WEM), exceeding the tender’s original target of 500 MW.   Projects include the Progressive Green Solutions Boddington Giga Battery, Atmos Renewables Merredin Big Battery, Neoen Australia Muchea Battery and Frontier Energy Limited Waroona Renewable Energy Project, all of which are scheduled to be operational by October 2027. 

Our General Manager Commercial, Thimo Mueller, gave the keynote presentation at the Energy Storage Summit Australia, highlighting the importance of incentivising investment in long duration storage. Thimo also joined Climate Energy Finance Director Tim Buckley, Nexa Advisory CEO Stephanie Bashir, and Energy-Storage.news Senior Reporter George Heynes for a panel discussion on incentivising storage.   The event highlighted the importance of storage in enabling the energy transition, with location, duration and the economics of investing in different energy storage sizes in focus.   Under the NSW Roadmap, AEMO Services conducts tenders for the long duration storage (LDS) LTESA, which offers long-term support payments to bring forward investment in long duration storage projects. Our next LDS LTESA tender is expected to launch in the second quarter of this year, seeking projects ready to be operational before 2030 or before 2034. Learn more about our tenders: https://lnkd.in/gbuBJ7bQ #storagesummit #energytransition #renewableenergy #longdurationenergystorage

In our role as NSW Consumer Trustee, we’re seeing financial value bids for long duration storage becoming increasingly competitive over tender rounds.  Successful proponents are utilising the flexibility of bid structure in a way that balances support for their project while unlocking value for NSW electricity consumers. This flexibility includes:  - Providing bids with reduced contract terms or with excluded annuity periods   - Setting annuity caps, which is the key pricing variable, below net revenue threshold – signifying the LTESA contract is used to guarantee a lesser amount than required to achieve investment hurdles  - Bidding annuity cap and net revenue threshold in nominal dollars, reducing consumer exposure to inflation risk. For webinars and more information on bidding for a NSW Roadmap tender, visit our website. #energy #energytransition

The Infrastructure Investment Objectives (IIO) Report is the central planning document guiding the NSW energy transformation by setting out a development pathway for the next 20 years and a tender plan for the next 10 years. The report is updated every two years, with the 2025 IIO Report expected to be published in the second half of the year. We recently held a webinar to share detail on a new modelling approach that will feature in the report, as well as how legislation updates will underpin the report design and timing. Watch the webinar, presented by our General Manager – System Planning, Reporting & Renewable Energy Zone Authorisation, Melanie Koerner. https://lnkd.in/gxps4Mhr

An important milestone has been reached for the Gentari Australia Maryvale Solar and Energy Storage project, with construction soon to commence.   The hybrid solar and battery project was awarded a Generation Long-Term Energy Service Agreement (LTESA) under NSW Roadmap Tender Round 4 delivered by AEMO Services as the Consumer Trustee.   The project was selected for its ability to provide long-term financial benefits for NSW electricity consumers, and its ability to provide significant reliability contributions to the energy system.   Once operational, the project will deliver about 243 MW at peak operation with about 350 MWh of energy storage, with the battery able to dispatch energy even when the solar resource is not available.   Learn more about the projects supported through NSW Roadmap tenders: https://lnkd.in/ghpmeD8b