NSW Firming Tender Completes 3GWh Battery Storage Rollout
All four battery storage and demand response projects from New South Wales' 2023 firming tender are now operational, delivering 1GW/3GWh of capacity.
A major tender for firming capacity in New South Wales has concluded with all selected projects now operational. The round delivered about 1 gigawatt and 3 gigawatt-hours of dispatchable capacity, representing more than AU$1.8 billion in investment, according to the state's Minister for Energy Penny Sharpe and AusEnergy Services Limited (ASL).
The completed portfolio supports grid reliability equivalent to around 8% of the state's projected peak demand for the summer of the 2026 financial year. The construction phase supported more than 1,500 jobs. The projects were selected under Tender Round 2 of the NSW Electricity Infrastructure Roadmap, receiving Long-Term Energy Service Agreements (LTESAs) in November 2023.
Major Battery Projects Now Online
The tender awarded contracts to four developers. Their projects, which vary significantly in scale and technology, are now contributing to the grid.
| Developer | Project Name | Capacity | Storage Duration | Location |
|---|---|---|---|---|
| AGL Energy | Liddell BESS | 500MW / 1,000MWh | 2 hours | Muswellbrook |
| Akaysha Energy | Orana BESS | 415MW / 1,660MWh | 4 hours | Montefiores |
| Iberdrola Australia | Smithfield BESS | 65MW / 130MWh | 2 hours | Western Sydney |
| Enel X | Virtual Power Plants | 95MW (aggregate) | Minimum 2 hours | Distributed |
AGL's chief operations and construction officer, Matthew Currie, stated the Liddell battery reached full commercial operations this month. He called it one of Australia's largest grid-scale batteries, helping to support the state's renewable energy transition.
Akaysha Energy's Orana battery achieved commercial operations in June 2026. CEO Nick Carter said the completion demonstrates how government policy and private investment can work together. Iberdrola Australia delivered its Smithfield project ahead of schedule in February 2026, co-locating it with an existing gas plant.
Demand Response Matters
Enel X provided a non-generation solution through demand response. The company aggregated three virtual power plants totaling 95MW of flexible capacity. An Enel X spokesperson said participating customers had already helped support the NSW grid during a heat event in December 2025. The company expects to deliver a further 32MW under a subsequent tender.
Contract Structure Ensures Reliability
ASL CEO Nevenka Codevelle explained the design of the LTESA contracts. The agreements provided revenue certainty to developers while imposing strict availability requirements. Projects must be available for dispatch at least 90% of the year and must respond to critical grid events classified as Lack of Reserve.
"This is a really important milestone for the Roadmap," Codevelle said, noting the projects are now available to support consumers when needed most.
Further Tenders in the Pipeline
The completion of this round marks a phase in a larger ongoing program. Since its first tender over three years ago, ASL has finalized six tenders across generation, long-duration storage, and firming. More than half of all projects awarded LTESAs are now either operational or under construction.
The agency is currently running tenders targeting an indicative 2.5GW of new generation and 12GWh of long-duration storage. An additional generation tender is expected in the fourth quarter of 2026, with another firming tender planned for the first quarter of 2027. Codevelle stated ASL is looking to support high-value projects that deliver a net financial benefit to electricity consumers in New South Wales.
