Maryvale solar and storage project receives support in New South Wales tender round – pv magazine Australia

July 1, 2024 David Carroll

The Maryvale Solar Farm, which is to consist of a 172 MW solar farm and a 172 MW/372 MWh battery energy storage system, has been awarded a Long-Term Energy Services Agreement (LTESA) under the fourth tender of the New South Wales (NSW) Power Infrastructure Action Plan as part of the state’s preparations to phase out coal-fired power stations from the electricity grid.

The tender round targeted 3000MWh of annual production, which equates to around 1150MW depending on the technology mix, but AEMO Services, which is managing the tender process as the Consumer Trustee for New South Wales in Australia, said LTESAs were awarded to just two power generation projects covering just 33% of the indicative contract size.

The first is the Maryvale solar farm and battery storage project being developed by Gentari Renewables Australia, a subsidiary of Malaysian state oil giant Petronas, near Wellington, about 50 kilometres southeast of Dubbo. The project is expected to be operational by 2028.

Another successful project is Spanish developer Iberdrola’s 140 MW Flyers Creek wind project near Orange, which has already completed construction and is on track to come online this year.

AEMO Services said it had received “a large number” of competitive bids for solar, wind and hybrid projects under the LTESA generation – a mechanism through which the government can fund projects and provide financial security – but only two had secured contracts following a “rigorous” two-stage tender evaluation process.

“Other projects were evaluated at the tender but were not awarded LTESA certification because they did not demonstrate sufficient benefits for electricity customers in New South Wales,” it said.

The tender was the fourth tender conducted under the New South Wales State Power Infrastructure Action Plan, which aims to bring at least 12GW of renewable energy generation capacity and 2GW of long-term storage online by 2030 to replace aging coal-fired power stations.

AEMO Services chief executive Nevenka Codevelle admitted the outcome of the latest tender round showed more needed to be done to secure renewable projects and transform the state’s coal-based energy system, but said there was a strong sense of momentum in the market.

“These two projects are a worthy addition to the healthy list of projects already supported across New South Wales, but it is clear that if we are to achieve our goals and deliver a reliable supply of cleaner, cheaper electricity to consumers across New South Wales,” she said.

Codevelle said the bidding system, a 10-year program in which auctions will be held approximately every six months, has proven effective in supporting renewable energy investment in New South Wales.

“With this tender, the total number of wind and solar projects under long-term energy services contracts has increased to seven in less than two years,” she added.

“The private sector is interested and these tenders will help us align those ambitions with the needs of the energy system.”