The Hunter's energy transition will get a massive shot in the arm as a result of the biggest renewable energy tender in the state's history.
Tender 8 is seeking 2.5 gigawatts of new generation renewable energy, or enough to power about one-third of the state's homes.
Hunter-based projects funded under previous rounds of the Long-Term Energy Service Agreement tender program include AGL's Tomago and Liddell battery projects and Ark Energy's Bowmans Creek Wind Farm Battery Energy Storage System.
The tender will be run by the independent Consumer Trustee, AusEnergy Service Limited (ASL).
Once awarded, it will pave the way for NSW to achieve up to 90 per cent of its renewable energy generation target of 12 gigawatts by 2030.
At the same time, ASL will open Tender 9, which seeks up to 12 gigawatt-hours of long-duration storage.
NSW is already on track to exceed its long-duration storage targets for 2030 and 2034.
The state government is now seeking to unlock 50 per cent more capacity beyond those benchmarks, to build a stronger pipeline of projects and a more reliable electricity system.
"This is the largest renewable generation tender in NSW history, and it shows just how serious we are about delivering cheaper and more reliable power for households and businesses," Minister for Climate Change and Energy Penny Sharpe said.
"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."
Long-duration storage is critical for reliability, as it allows energy to be stored for extended periods and dispatched when demand is high or when weather conditions are not ideal for renewables to generate power.
Eligible technologies include large-scale batteries and pumped hydro projects.
When delivered, Tenders 8 and 9 will significantly boost NSW's generation and storage capacity.
They will result in enough generation capacity to power 1.26 million homes.
To adapt to the rapidly evolving market and improvements in battery technology, Tender 8 will also be the first to introduce a new Hybrid Generation Long-Term Energy Service Agreement product, allowing applicants to combine solar or wind generation with battery storage in a single project.
This will make it easier for investors to bring forward projects that deliver the best outcomes for consumers.
ASL expects to determine the successful projects under Tenders 8 and 9 by late 2026.
