The New South Wales (NSW) Government has awarded contracts for six large long-duration battery storage projects under Round 6 of the NSW Electricity Infrastructure Roadmap Tender. This marks the largest single procurement of batteries in NSW’s history. The awarded projects, which together total approximately 1.17 GW/11.98 GWh of capacity, highlight the government’s effort to enhance grid stability. Additionally, the battery storage projects will enable increased integration of renewable energy as ageing thermal generation continue  to retire.

Winners of NSW Round 6 Battery Storage Projects Tender

The six successful bidders secured Long-Term Energy Service Agreements (LTESAs) and are expected to deliver storage systems predominantly designed for 8-plus-hour durations. This will support round-the-clock electricity supply in conjunction with solar and wind generation. The contracted portfolio includes:

• Great Western Battery by Neoen Australia. A 330 MW/3,500 MWh project, and the largest single award under the tender
• Bannaby Battery by BW ESS Australia with 233 MW/2,676 MWh capacity
• Bowmans Creek Battery by Ark Energy with 250 MW/2,414 MWh capacity
• Armidale East Battery by FRV Services Australia with 158 MW/1,440 MWh capacity
• Kingswood Battery by Iberdrola Australia with 100 MW/1,080 MWh capacity
• Ebor Battery by Bridge Energy and Energy Vault with 100 MW/870 MWh capacity

Key Quote

Energy Minister Penny Sharpe said the contracts “will help secure our [NSW’s] renewable energy future”. This is by providing storage that can shift excess solar generation into evening peak demand and strengthen grid resilience as coal-fired generation retires. The awards exceed the tender’s indicative targets, originally aimed at 1 GW/8 GWh. This also points toward both strong competition and falling technology costs in the long-duration storage market.

Outlook on NSW and Australia’s Battery Storage Landscape

According to AusEnergy Services Ltd (ASL), which administered the tender on behalf of the state, the latest awards increase NSW’s total contracted long-duration storage portfolio to around 30 GWh. This is when combined with earlier procurement rounds, moving the state closer to its legislated storage objectives of 2 GW and 28 GWh by 2034.

Also noteworthy is that these long-duration installations are part of efforts across the National Electricity Market (NEM) to provide hour-long and multi-hour storage. This type of storage can firm variable renewable energy, and help manage evening “duck curve” dynamics. And, like with other batteries, mitigate system volatility. Larger installations like the Great Western project are also seen as precursors to even bigger grid-scale storage developments, potentially integrating with pumped hydro or green hydrogen in the next decade.

Developers awarded contracts now proceed with detailed engineering, procurement, and financing. Construction is expected to begin soon while commissioning milestones will be phased toward the end of the decade.