LTESA Tender Round 5 results for long-duration energy storage were announced last week. It secured over 1 GW of new power capacity from energy storage with durations of eight hours or longer. This was across three different projects, including a new pumped hydro system. This is just the second non-battery technology project to win an LTESA contract. The tender also awarded contracts to two new battery energy storage projects.
In this article we take a quick look at the results, which projects won contracts, and what it means for energy storage capacity in the NEM.
Executive Summary
- The fifth LTESA tender awarded 1,025 MW of long-duration storage contracts to projects in New South Wales — a power capacity record for the scheme.
- In energy storage terms, 13.8 GWh was contracted — more than triple the previous record and a major step toward NSW's 2030 and 2034 targets.
- Winning projects include two 8-hour BESS (Griffith and Stoney Creek) and one 15-hour pumped hydro (Phoenix PHES).
- Combined LTESA and CIS tenders have now backed over 5 GW of energy storage, with the majority located in NSW.
What is an LTESA?
A Long-Term Electricity Service Agreement, or LTESA, is a contract provided to projects forming part of New South Wales’ Electricity Infrastructure Roadmap. This policy was launched to support 12 GW of new renewable and 2 GW of long-duration energy storage in the state by 2030.
Long-duration energy storage is defined as having a duration of eight hours or longer. The New South Wales government announced a further target of 28 GWh of long-duration storage capacity by 2034 last year.