Joint media release: Capacity Investment Scheme supports NSW to deliver 1GW of cleaner, cheaper, more reliable energy for NSW

The Hon Chris Bowen MP, Minister for Climate Change and Energy

The Hon Penny Sharpe MLC, NSW Minister for Climate Change, Minister for Energy, Minister for the Environment, Minister for Heritage

The Albanese and Minns governments are delivering more reliable and secure power with over 1 gigawatt (GW) of dispatchable energy projects being unlocked across NSW.

As ageing coal-fired power stations become less reliable and exit the grid, dispatchable power is critical for supporting renewables - keeping the lights on and prices low for NSW residents and businesses when the sun isn’t shining, and the wind isn’t blowing.

That’s why the Commonwealth partnered with the states and territories to deliver the Capacity Investment Scheme – and can join NSW in announcing the successful bids of six major energy projects in the state, totalling 1,075 megawatts (MW) of reliable capacity.

The projects from this tender alone are equal to 8% of the total 2022/23 NSW summer peak demand into the network at short notice.

The projects represent $1.8 billion in energy infrastructure and will create 400 jobs.

They are delivering value for energy users and taxpayers, with the 1,075 MW announced today exceeding the indicative 930 MW targeted by this tender, which is a partnership between the Capacity Investment Scheme and NSW’s Electricity Infrastructure Roadmap.

The successful projects will not only help deliver reliability and affordability themselves, but will help drive more investment in cleaner, cheaper energy across the grid.

The six successful projects are: 

• Akaysha Energy’s Orana Renewable Energy Zone battery, located in Wellington in central-west NSW, with 415 MW capacity and 1,660 MWh 4-hour storage capacity
• AGL Energy’s Liddell battery, located in Muswellbrook, with 500 MW capacity and 1,000 MWh 2-hour storage capacity
• Iberdrola Australia’s Smithfield Sydney battery, located in Smithfield in Western Sydney, with 65 MW capacity and 130 MWh 2-hour storage capacity
•  And three separate virtual power plants through Enel X Australia’s demand response project totalling 95 MW capacity with minimum dispatch duration of 2 hours.

All successful projects are targeting commercial operations by December 2025.

Quotes attributable to Minister for Climate Change and Energy Chris Bowen:

“Firming infrastructure is the key to enabling the rollout of more renewable generation, the cheapest, cleanest form of energy available.

“4GW of dispatchable power left the grid over the past decade with only 1GW to replace it - announcements like today’s are the result of Governments getting on with the job of delivering a cleaner cheaper grid for NSW.”

Quotes attributable to NSW Minister for Climate Change and Energy Penny Sharpe:

“These projects are critical for energy security in NSW as we transition to a cheaper, cleaner energy system.

“We have no time to waste as coal-fired power stations retire. We must get more renewable energy into the grid – backed by storage and flexible demand – to keep the lights on and meet our net zero targets."