The New South Wales Government has announced the largest renewable energy tender in the state’s history as part of its long-term clean energy transition strategy. The initiative is expected to secure enough renewable electricity to power nearly one-third of homes across the state while supporting the gradual retirement of aging coal-fired power stations.

The major initiative, known as Tender 8, aims to procure 2.5 gigawatts of new renewable energy generation capacity. It is the largest generation tender launched under the NSW Electricity Infrastructure Roadmap and is being managed by independent Consumer Trustee AusEnergy Services Limited (ASL). The tender is expected to help the state achieve almost 90 percent of its target of generating 12 gigawatts of renewable energy capacity by 2030.

At the same time, ASL has also opened Tender 9, which focuses on long-duration energy storage projects. Through this process, the government is seeking up to 12 gigawatt-hours of additional storage capacity. Although New South Wales is already on course to exceed its original storage goals for 2030 and 2034, the Minns Labor Government has decided to unlock an extra 50 percent capacity above those baseline targets to strengthen future grid reliability.

The government said long-duration storage technologies, including pumped hydro systems and utility-scale batteries, will play a critical role in supporting renewable energy integration. These systems can store surplus electricity generated during periods of high solar and wind production and release it back into the grid when renewable output falls or electricity demand rises.

Combined, the two tenders are expected to generate enough electricity to power around 1.26 million homes across New South Wales. The government believes expanding renewable generation and storage infrastructure will help maintain reliable electricity supply while also placing downward pressure on household energy bills amid ongoing cost-of-living challenges.

Tender 8 also introduces a new hybrid agreement model designed to reflect advancements in battery storage technology. Under this arrangement, developers can submit integrated renewable energy projects that combine solar or wind generation with battery storage in a single proposal. The government believes this approach will simplify project delivery and encourage greater investment in high-quality energy infrastructure.

NSW Minister for Climate Change and Energy, Penny Sharpe, said the tenders demonstrate the government’s commitment to delivering affordable, reliable, and cleaner electricity while preparing the state’s power system for the future. The successful projects selected under both Tender 8 and Tender 9 are expected to be announced by late 2026.

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