AEMO Services has announced a significant response to its tender for the South West Renewable Energy Zone (REZ), receiving bids from projects that collectively represent over 15GW of wind, solar, and battery capacity.
The New South Wales Government highlighted that this tender presents renewable generation and storage projects within the South West REZ a vital opportunity to advance their connection to the electricity grid. Importantly, the bids submitted nearly quadruple the available capacity of 3.98GW offered through the tender.
Impact on Local Communities and Consumers
The New South Wales Government expressed optimism that the intense competition for access rights in the South West REZ will facilitate the identification of projects best able to become operational swiftly, ultimately serving the best financial interests of electricity consumers in New South Wales while also benefitting local communities.
Those projects that secure access rights will be responsible for paying access fees, which will result in substantial contributions to the local community through the Community and Employment Benefit Program.
Focus on Long-Duration Storage
There has also been considerable interest in long-duration storage initiatives, with proposal submissions amounting to more than double the initial target of 1GW. These long-duration storage projects are integral to harnessing surplus energy, storing it, and releasing it over an extended period of eight hours or more during peak demand or when renewable sources are unavailable.
Such initiatives play a crucial role in stabilising the supply of renewable energy, ensuring a dependable electricity source, particularly during times when solar and wind resources are low.
Tender Management and Future Prospects
The tender process was managed by AEMO Services in its role as Consumer Trustee under the NSW Electricity Infrastructure Roadmap. EnergyCo, the managing authority of the South West REZ access scheme, is set to allocate the access rights based on the recommendations from the Consumer Trustee in early 2025.
Penny Sharpe, the New South Wales Minister for Climate Change and Energy, noted that the robust interest in this tender underscores New South Wales’ status as a frontrunner in Australia’s energy transition and an appealing ground for renewable investment.
Sharpe remarked, “The interest means that the best projects can be chosen to provide New South Wales with affordable, clean and reliable energy.”