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NSW LTESA Tender 7 results, and what changes in Tenders 8 and 9

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NSW LTESA Tender 7 results, and what changes in Tenders 8 and 9

NSW Roadmap Tender 7 awarded Long-Term Energy Service Agreements (LTESAs) to AGL's Tomago Battery (500 MW, 4-hr) and Enel X's Virtual Power Plant (32 MW, 4-hr) on 15 May 2026.

Tenders 8 and 9 open soon, with outcomes due by year-end. Tender 8 is the first LTESA generation round since the Capacity Investment Scheme (CIS) began. Meanwhile, Tender 9 is the next Long Duration Storage (LDS) round. This article covers what won Tender 7, what changes in Tenders 8 and 9, and what battery developers should focus on when bidding.

Executive summary

  • Tender 7 went to AGL's Tomago Battery (500 MW, 4-hr) and Enel X's VPP (32 MW, 4-hr). Three success factors mattered: deliverability by end-November 2027, location, and low cost.
  • T7 cleared at a MWh-weighted Equivalent Annuity Cap at least 50% below Tender 2. T2 had cleared at $40,000/MW/year nominal, 10-year term.
  • Tender 8 introduces a new Hybrid Generation LTESA for projects with ≥4 hours of co-located storage. The standard Generation LTESA also moves to a 1-year swap (down from 2).
  • Tender 9 LDS keeps the T6 product with three changes: 5 MW minimum (down from 30), two COD windows (2029 or 2033), and system strength scored inside Merit Criteria 1 (MC1).

NSW LTESA Roadmap

ASL has run seven LTESA tenders to date. LTESA Rounds 7-9 focus on the gaps left by retiring thermal capacity:

  • Firming capacity for the 2027-28 summer (T7).
  • Renewable generation and a new hybrid product for co-located storage (T8).
  • Additional long-duration storage above the 2034 legislated minimum (T9).

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NSW LTESA Tender 7 results, and what changes in Tenders 8 and 9

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