King & Wood Mallesons (“KWM”) is delighted to have advised AEMO Services Limited (“ASL”) on Tender Round 5 for Long-Term Energy Service Agreements (“LTESAs”) under the NSW Electricity Infrastructure Roadmap. This tender focused on long-duration storage (“LDS”) infrastructure critical for NSW’s energy security, as well as delivery of high-quality electricity infrastructure that is in the long-term financial interests of NSW electricity customers.
ASL, together with the NSW Government, announced the award of contracts under Tender Round 5 for a total of 1.03GW of capacity and 13.79GWh of electricity storage capacity – making this the largest LDS LTESA tender outcome to date.
Significantly, this tender round saw the award of a contract to ACEN Australia for the Phoenix Pumped Hydro Project – the first pumped hydro project to be supported under the LTESA scheme. This project will help replace retiring coal-fired generation capacity by providing NSW electricity customers with upwards of 15 hours of nominal storage duration.
The successful projects are as follows:
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Tender Round 5 built on the innovative contractual arrangements offered in Tender Rounds 1-4, which entitled successful bidders to access minimum cashflows over the term of their project. KWM also advised ASL on Tender Rounds 1-4 and has experience with renewable energy tender processes for generation, firming and long-duration storage infrastructure.
The KWM team was led by Partners Vishal Ahuja and Jessica Kruger, who were supported by Special Counsel Tracey Jordan, Senior Associates Stephen Brightman and Capucine Hague, Solicitors Annelise Nguyen, Claire Ng, Xani Meyers and Nick Forbutt and Specialist Energy Counsel David Ellis.
KWM continues to be at the forefront of market leading transactions that support the country’s energy transition, having already advised ASL on LTESA Tender Rounds 1-4 and the Australian Government’s Capacity Investment Scheme (CIS) tenders.
