The NSW Government and AEMO Services has awarded Ark Energy’s Richmond Valley Battery Energy Storage System (BESS) a Long-Term Energy Service Agreement (LTESA) under the NSW Electricity Infrastructure Roadmap’s incentive scheme.

The Richmond Valley BESS will be co-located with Ark Energy’s proposed Richmond Valley Solar Farm at Myrtle Creek in the Northern Rivers region of NSW. It will be capable of providing a power capacity of up to 275 MW and energy storage of up to 2,200 MWh over eight hours.

“We are delighted that Ark Energy has been successful in the NSW Electricity Infrastructure Roadmap tender program and the Richmond Valley BESS has been awarded an LTESA. This project will make a significant contribution to the future electricity needs of NSW consumers and support the state's transmission network through the energy transition,” said Daniel Hamel, Head of Commercial Strategy & Operations.

“We thank the NSW Government and AEMO Services for the trust and confidence both have placed in Ark Energy and look forward to delivering this important project for NSW.”

Following the outcome of this tender round NSW has secured 574 MW (4,192 MWh) of the legislated 2 GW target for long-duration storage.

“NSW is now almost halfway there on our 2030 renewable generation target, and over a quarter of the way there on our long-duration storage target," said NSW Minister for Climate Change and Energy Penny Sharpe.

“The Roadmap tenders are accelerating the transition to renewables, ensuring households and businesses have reliable access to clean and affordable electricity into the future, while providing jobs and other benefits in regional communities."

The Richmond Valley BESS is one of five successful projects which together represent $4.2 billion in private sector investment in NSW’s renewable energy infrastructure. They are expected to be operational by 2028 and to contribute an estimated 1000 jobs, $2 billion in local supply chain benefits and $40 million towards First Nations initiatives.

AEMO Services Executive General Manager Paul Verschuer said the tender program was driving confidence in the NSW energy transition with both investors and consumers.

“AEMO Services has delivered three highly successful tenders throughout 2023, helping to bring-forward more than $8.5 billion private sector investment in NSW’s future energy system.

“We provide those projects with flexible financial security they need to accelerate their completion. It’s clear that the insurance provided by the LTESA contract is working to address a key market risk that might otherwise delay or discourage investors from participating in the transition."

Mr Verschuer said the round 3 tender bids were very competitive and proposed a range of innovative technologies and community initiatives including community benefit programs, creation of local workforce programs, support for local supply chains, and opportunities for First Nations people.

More information on the outcome of AEMO Services' NSW Roadmap - Tender Round 3 is available here and the LTESA program here.