Capacity Investment Scheme supports NSW to deliver 1 GW of cleaner, cheaper, more reliable energy

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

Chris Bowen and Penny Sharpe on Parliament House roof with solar panels.

As aging 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 6 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 6 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 in the Hunter Valley, 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
  • 3 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.


Quote 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.

'4 GW of dispatchable power left the grid over the past decade with only 1 GW 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.'

Quote 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.'