Firming up future reliability

23 October 2025

Australia stands at an inflection point in its transition to renewable energy.

With solar and wind now among the dominant sources of new generation, the transition is continuing to gain momentum. Yet, as we get closer to our legacy infrastructure exiting the system, the 2024 Energy Security Target Monitor Report has highlighted a need for more firming to support reliability in 2027-28.

This isn't a signal to hit the panic button. Rather, it's a call to action to ensure NSW’s energy system remains secure and reliable.

The solution? A targeted investment in firming infrastructure and demand response technologies to keep the system resilient under pressure.

Firming isn’t simply an insurance policy – it's a strategic enabler of the renewable transition. As solar and wind become dominant sources of generation, firming steps in when the system needs it the most.

Technologies such as grid-scale batteries, fast-start gas peaker plants, pumped hydro, and virtual power plants deliver energy that can be dispatched quickly. This can support the system in times of stress – such as during heatwaves or unexpected power plant outages, helping to avoid load shedding and price spikes.

Demand response, too, is poised to play an increasingly important role. By incentivising consumers and industries to reduce electricity use during peak periods, or shift it to off-peak hours, demand response helps flatten the curve. Virtual power plants can coordinate up to thousands of small-scale assets, like home batteries or smart thermostats, to act as one flexible resource. Together, firming and demand response shape a more agile, responsive energy system.

A number of measures are already underway to address the required additional firming infrastructure needed in the summer of 2027-28, including a direction from the NSW Minister for Energy for ASL acting as the NSW Consumer Trustee to conduct a tender to bring forward an indicative 500 MW of firming infrastructure under the NSW Electricity Infrastructure Roadmap.

NSW Roadmap Tender Round 7 for Firming Infrastructure is now open for bids, and calls for firming and demand response projects that can support reliability in the Sydney-Newcastle-Wollongong subregion by the end of 2027 to come forward and participate.

For more information, visit the tender webpage.