Australia’s Biggest LDES Tender: NSW Contracts Six Battery Storage Projects Totalling 1.17GW/12GWh

Why It Matters

The added storage bolsters grid reliability and supports NSW’s renewable integration targets, while the LTESA model enhances bankability and lowers electricity price volatility for consumers.

Key Takeaways

• NSW secured 1.17 GW / 12 GWh LDES in six contracts.
• Projects exceed tender target, reaching 117 % of 1 GW goal.
• Total NSW storage capacity now 30 GWh, nearing 42 GWh 2034 target.
• LTESA contracts provide revenue certainty, solving long‑duration ‘missing‑money’ issue.
• Next tenders aim for 12 GWh each, intensifying market competition.

Pulse Analysis

Long‑duration energy storage is becoming a cornerstone of Australia’s transition to a low‑carbon grid, and New South Wales’ latest tender underscores that shift. By allocating 1.17 GW of lithium‑ion capacity—enough to deliver nearly 12 GWh of dispatchable power—the state moves significantly toward its 42 GWh target for 2034. The tender’s scale, surpassing the original 1 GW benchmark by 17 percent, reflects both the urgency of bolstering system resilience and the confidence of developers in NSW’s procurement framework.

The tender’s design, anchored by Long‑Term Energy Service Agreements (LTESAs), directly tackles the historic “missing‑money” challenge that has stalled many LDES projects. By guaranteeing revenue streams over 14‑year periods, LTESAs improve bankability, attracting major players such as Neoen, Iberdrola, and Energy Vault’s partner Bridge Energy. Beyond financial engineering, the projects promise tangible economic benefits, including up to 60 direct construction jobs at the Ebor site and the deployment of advanced battery management systems that enhance frequency and voltage control across the network. This aligns with a broader national trend, as states like South Australia launch their own capacity mechanisms to replace retiring thermal generation.

Looking ahead, NSW’s pipeline of back‑to‑back tenders—12 GWh in Q2 2026 and another 12 GWh in 2027—will intensify competition and accelerate the rollout of grid‑scale storage. These contracts are expected to shave volatility from wholesale electricity markets, lower consumer bills, and enable higher penetrations of wind and solar. With no guarantee of further tenders beyond 2027, developers are likely to prioritize cost‑effective, long‑duration solutions, cementing LDES as a strategic asset for Australia’s energy security and climate goals.

Australia’s biggest LDES tender: NSW contracts six battery storage projects totalling 1.17GW/12GWh

By George Heynes · February 5, 2026

ASL (formerly AEMO Services) has completed New South Wales’ (NSW) largest‑ever tender for long‑duration energy storage (LDES), contracting six new battery projects for a combined 1.17 GW / 11.98 GWh.

The tender outcome represents the largest storage capacity award in NSW to date, both in terms of total gigawatt capacity and number of contracted projects. The six successful lithium‑ion battery energy storage systems (BESS) range in output from 100 MW to 330 MW, with storage durations of 8.7 to 10.6 hours.

ASL awarded Long‑Term Energy Service Agreements (LTESAs) to 117 % of the indicative tender size of 1 GW and at least 8 GWh, exercising its flexibility to recommend contracts above the target that were determined to be in the long‑term financial interests of NSW electricity customers.

The successful projects bring the state’s total contracted new storage capacity to 30 GWh, marking substantial progress toward the 42 GWh required by 2034 under ASL’s stretch infrastructure objectives.

The successful projects span multiple regions across NSW, connecting to existing network infrastructure without requiring Access Rights. A full breakdown of the projects is shown below:

| Project name | Proponent | Technology | Output / Capacity | Nominal storage duration |

|--------------|-----------|------------|-------------------|--------------------------|

| Ebor BESS | Bridge Energy | Lithium‑ion BESS | 100 MW / 870 MWh | 8.7 hours |

| Bowmans Creek BESS | Ark Energy | Lithium‑ion BESS | 250 MW / 2,414 MWh | 9.7 hours |

| Armidale East BESS | FRV Services Australia | Lithium‑ion BESS | 158 MW / 1,440 MWh | 9.1 hours |

| Bannaby BESS | BW ESS Australia | Lithium‑ion BESS | 233 MW / 2,676 MWh | 11.5 hours |

| Kingswood BESS | Iberdrola Australia | Lithium‑ion BESS | 100 MW / 1,080 MWh | 10.8 hours |

| Great Western Battery | Neoen Australia | Lithium‑ion BESS | 330 MW / 3,500 MWh | 10.6 hours |

The Great Western Battery, owned by Neoen Australia, represents the largest single award at 330 MW / 3,500 MWh, followed by Ark Energy’s Bowmans Creek BESS (250 MW / 2,414 MWh) and BW ESS’ Bannaby BESS (233 MW / 2,676 MWh). The Armidale East BESS (158 MW / 1,440 MWh), Ebor BESS (100 MW / 870 MWh), and Kingswood BESS (100 MW / 1,080 MWh) complete the portfolio.

Among these, the Ebor BESS has secured its 14‑year LTESA through Energy Vault’s Australian development partner Bridge Energy, representing an AU$310 million (US$216 million) investment utilising Energy Vault’s proprietary B‑VAULT technology. Energy Vault Chairman and CEO Robert Piconi emphasised the strategic importance of the Australian market expansion:

“Supporting Bridge Energy on achieving this award represents another important growth milestone in advancing our Energy Asset Management strategy in owning and operating energy assets over the long term,” Piconi said.

The Ebor project, located in the New England Region of NSW, will provide 8 hours of dispatchable capacity using Energy Vault’s Vault‑OS Energy Management System. Construction is expected to generate up to 60 direct jobs, with the facility targeted to commence operations in 2028.

Strategic contribution to NSW energy objectives

The contracted projects are expected to contribute approximately 59 % toward the minimum 2030 objective of 2 GW and 16 GWh of long‑duration storage, once all facilities become operational. When combined with outcomes from prior LTESA tenders, NSW will meet its 2030 objective and exceed the 2034 minimum objective of 28 GWh. The projects will contribute roughly 43 % toward the 2034 minimum objective once operational, with timing determined by individual commercial operation dates.

All successful projects demonstrated value to NSW electricity customers and benefits to their host communities through the competitive tender process. ASL CEO Nevenka Codevelle emphasised the effectiveness of the procurement framework:

“The tender process and the financial products we’ve designed are working as intended, and NSW is on its way to meet the high bar we’ve set for securing long‑duration energy storage,” Codevelle said.

The projects are expected to improve reliability outcomes for NSW, providing essential system services such as frequency and voltage control, in addition to energy storage functions. The procurement strategy utilises LTESAs to address the “missing‑money” challenge that has historically impeded the development of long‑duration storage projects. The LDES LTESA structure enhances project bankability and accelerates delivery of new electricity infrastructure by providing developers with revenue certainty.

As NSW’s independent Consumer Trustee, ASL established an ambitious development pathway in the 2025 Infrastructure Investment Objectives Report, targeting 42 GWh of long‑duration storage by 2034 – significantly exceeding statutory minimum requirements. The enhanced target reflects potential consumer benefits from additional storage capacity, including improved resilience against reliability risks.

Market development and upcoming opportunities

The successful tender demonstrates continued market confidence in NSW’s long‑duration storage procurement framework, with developers utilising the flexibility of LTESA products to suit individual project requirements. These agreements deliver consumer value by unlocking investment in additional capacity that can reduce wholesale electricity price volatility.

Limondale BESS, the first project awarded an LDES LTESA in 2023, is currently in commissioning and approaching commercial operations. The 50 MW / 400 MWh facility represents the initial deployment of 8‑hour‑plus storage projects that would not have reached financial close without the LTESA framework, according to ASL.

The procurement success stems from Australia’s energy storage market experiencing significant expansion, with multiple states implementing capacity mechanisms to secure grid‑scale storage. South Australia, for example, recently launched its first capacity tender for 700 MW of long‑duration energy storage, indicating coordinated national efforts to replace retiring thermal generation with renewable energy and storage infrastructure.

Future tender pipeline maintains momentum

ASL has outlined a structured pipeline of future procurement opportunities to maintain investment momentum and achieve long‑term capacity targets. The next long‑duration storage tender will commence in Q2 2026, seeking 12 GWh of projects, followed by an additional 12 GWh tender in 2027. These upcoming tenders will target projects capable of operation by 2030 to support the Minimum Objective, alongside longer‑lead‑time developments for 2034 commercial operations.

ASL will concurrently recommence Generation LTESA tenders, with a 2.5 GW procurement scheduled to begin in Q2 2026. A current tender seeking 500 MW of firming and demand‑response projects operational by the end of 2027 remains on track for completion by May 2026. The structured approach provides market visibility while maintaining competitive pressure for future procurement rounds.

Codevelle noted the finite nature of planned procurement opportunities beyond 2027:

“There are no guarantees of further LDS tenders beyond this point, so we expect competition to strengthen even further for these future tender rounds,” Codevelle said.