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NSW opens its LTESA scheme to gas firming

NSW will tender for 1,500 MW of firming capacity in 2027, with gas-fired generation eligible under a new Firming LTESA.

The NSW Government will seek 1,500MW of new firming capacity through a Firming Long Term Energy Service Agreement (LTESA) tender. 


The tender opens in early 2027, and gas-fired generation is explicitly eligible.


Announced by Energy Minister Penny Sharpe on 13 October, the tender will be run by ASL, the NSW Consumer Trustee. It targets the reliability gap AEMO forecasts for 2033-34 as the Bayswater and Vales Point coal stations retire.


Key Settings: 

  • 1,500MW sought

  • Projects must add net energy during system stress, be dispatchable and sustain output for at least eight hours

  • Standalone batteries and pumped hydro are not eligible

  • Projects must be operating by the end of May 2033

  • Consultation closes 4 November 2026

For developers, the Firming LTESA provides a bankable revenue floor for the dispatchable capacity NSW will need once coal exits.


Read more in the Australian Financial Review.

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