NSW pumps up long-duration energy storage target to 28 GWh
The New South Wales government will pump up the state’s long-duration energy storage capacity target to 28 GWh by 2034 as it prepares for the exit of coal-fired power generation and greater renewable energy integration.
New South Wales (NSW) had already established a target of achieving 16 GWh of long-duration energy storage (LDES) capacity by 2030 but it has now announced an additional target of 12 GWh by 2034, increasing the existing objective by more than 40%.
NSW Energy Minister Penny Sharpe said the announcement will improve the bankability of long-duration storage and provide investors with a clear investment signal, supporting investor confidence and the energy transition.
“This is a clear signal for investors that NSW is committed to supporting more long-duration storage – and we’re in it for the long haul,” she said.
With three of the state’s four remaining coal-fired power stations expected to retire within the next decade, Sharpe said long-duration storage will be a cornerstone of the successful transition to a renewable energy system.
Long-duration storage projects, including pumped hydro, batteries, compressed air storage and other technologies, will allow renewable energy such as solar and wind to be stored and then released on demand when needed.
“Long-duration energy storage stores excess cheap renewable energy and provides it back to the market during high-demand periods, it’s great news for our energy future,” Sharpe said.
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NSW Energy Minister Penny SharpeImage: Penny Sharpe
In addition to the new 28 GWh of long-duration energy storage by 2024 objective, the state government has also announced it will retain the eight-hour duration requirement of LDES within the Energy Infrastructure Act.
It will also require AEMO Services, in its role as consumer trustee, to consider the full range of LDES benefits in its assessment of long-term energy service agreement (LTESA) bids. This includes a project’s ability to provide system security services such as inertia and system strength, and its capacity to offset or defer network investment.
The state government’s announcement has been widely welcomed by the energy sector with Clean Energy Council market, investment and grid Policy Director Christiaan Zuur saying it provides the market with the requisite confidence to commit to project investments.
“This is a sensible policy that demonstrates renewable generation supported by storage is the lowest-cost pathway to a reliable, sustainable and affordable modern electricity system,” he said, adding that the outcome “is an encouraging step towards giving industry the certainty needed to back more investment in energy storage.”
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