The Minns Labor Government is taking further action to build a reliable, affordable energy system by supporting 3 new long-duration storage projects. The latest tender round - the largest of its kind in Australia - has for the first time selected a pumped hydro project, as well as two large-scale batteries.
Long-duration storage serves an important role in the electricity system, allowing renewable energy such as solar and wind to be stored and then released on demand when needed.
This helps smooth the supply of renewable energy around the clock, reducing price spikes and placing downward pressure on electricity prices over time.
The projects, under the NSW Electricity Infrastructure Roadmap, include:
- Two large-scale batteries, Stoney Creek Battery Energy Storage System (BESS) in Narrabri and Griffith BESS in Yoogali.
- ACEN Phoenix Pumped Hydro Energy Storage, the first pumped hydro project to be successful in the Roadmap tender program, located near Lake Burrendong.
The projects will create around 900 construction jobs and 60 ongoing positions. They will also help to secure at least $3.5 billion in investment in NSW's energy system, bringing new investment to regional NSW and underscoring NSW's place as a leading destination for energy industry investment.
Combined, the awarded projects represent 1.03 gigawatts or 13.79 gigawatt hours of energy storage capacity - exceeding the tender's indicative target of 1 GW.
When fully charged, the one gigawatt of long duration storage will contain enough energy to power more than half a million households for a day, ensuring a reliable supply of electricity is available during periods when the sun isn't shining, and the wind isn't blowing.
The successful projects can each continuously dispatch electricity for at least 8 hours. The Lake Burrendong project offers a storage capacity equivalent to around 15 hours duration.
With the addition of these projects, NSW has now locked in 40% of its long-duration storage by 2030 target, and more than 65% of the recently legislated 2034 target.
The tender is the fifth conducted by AEMO Services as Consumer Trustee under the NSW Electricity Infrastructure Roadmap.
Other projects that will support the stability and reliability of the grid that are due to come online in NSW soon include the Waratah Super Battery, the Smithfield Battery Energy Storage System and Stage 1 of the Eraring Big Battery.
Quote attributable to the Minister for Climate Change and Energy, Penny Sharpe:
'The Minns Labor government is delivering a reliable, affordable energy system that benefits communities and the economy.
'NSW is already powered by around 35% renewable energy. These projects will help ensure NSW households and businesses have access to affordable and reliable electricity as we continue to transform our grid.
'These new projects will drive local and regional economies with jobs and investment, while also delivering a reliable energy system for the whole of NSW.'
