NSW LTESA and Access Rights Tender Now Open
04 October 2022
04 October 2022
We have been tracking the development of the legislation and regulations closely, including in particular the auctions for the access rights for the CWO REZ and auctions for the Long Term Energy Service Agreements (LTESAs).
To assist you in the preparation of your bid, we would be very happy to offer a presentation to you on the LTESA/access right auction and share some insights we have based on our review of the tender materials, including the long form LTESAs, and similar government-run auctions we have assisted clients on in the past.
Today marks the commencement of the inaugural Tender for Long Term Energy Service Agreements (LTESAs) and access rights as part of the NSW Electricity Infrastructure Roadmap.
The indicative size of the inaugural tender is 2500 GWh of annual generation and 600 MW of long-duration storage, which will be awarded if it is deemed in the long-term financial interests of NSW electricity consumers.
Under the proposed contracts, successful generators will be offered 20-year contract terms, allowing the projects to guarantee future revenue. The contracts will also include "zero price floors", protecting projects from low (or negative) prices in the wholesale electricity market.
Pumped hydro energy storage projects could secure 40-year contracts whilst battery projects will be offered 14-year contractual terms in future firming auctions.
The Tender Pack provides a framework for prospective proponents on the structure and design of tender rounds.
The documents included in the Tender pack include:
A copy of the Tender Pack can be found here.
The documentation issued by the Consumer Trustee in respect of the Tender round, includes:
Applications are now open for Tender Round 1. The Tender will remain open until 28 October 2022 at 5pm AEST.
Below are some of the key dates set out in the Tender Guidelines:
|Tender Commencement Date||4 October 2022|
|Project Bid Closing Date and Time||28 October 2022 at 5.00pm AEST|
|Invite to submit Financial Value Bid||Mid December 2022|
|Financial Value Bid Closing Date||10 February 2023|
|Notify unsuccessful Proponents||April 2023|
|Announce Selected Bids||No later than April 2023|
Click here to see our latest Energy Alerts, as part of our Energy Alert Series.
Authors: Paul Newman, Partner; Andre Dauwalder, Senior Associate; Harriet Curran, Lawyer; Rachel Sweeney, Trainee.