About NSW Roadmap tenders

As the independent Consumer Trustee under the NSW Electricity Infrastructure Roadmap, ASL conducts competitive tenders for Long-Term Energy Service Agreements (LTESAs). These tenders support the timely development of new renewable generation, long-duration storage (LDS), and firming infrastructure projects to meet NSW’s future electricity needs.

Tenders are conducted on the basis of the Infrastructure Investment Objective (IIO) report's 10-year tender plan, which sets out the expected timing and scale of generation, LDS, and firming infrastructure tenders under the NSW Roadmap.

Tender process

NSW Roadmap tenders may be run through either a single-stage or two-stage eligibility and merit assessment process.

Bids are assessed against mandatory eligibility requirements and a range of merit criteria, including:

  • Financial value and system benefits
  • Project deliverability
  • Organisational capability
  • Social value

Following assessment and the conclusion of negotiations, ASL makes recommendations to the Scheme Financial Vehicle (SFV), which enters into LTESAs with successful proponents.

About Long-Term Energy Service Agreements

LTESAs are option-based revenue support contracts that provide projects with the ability to access fixed cashflows or revenue top-ups. They are designed to support projects to achieve final investment decision (FID)/ Financial close by reducing exposure to future wholesale electricity price and offtake uncertainty.

LTESAs are designed to be flexible, allowing proponents to tailor bids to their project’s risk profile and financing needs. Bid prices can be sculpted over periods, years can be forfeited, and projects may elect to fully exercise, partially exercise, or not exercise the option in a given swap period. This flexibility allows proponents to seek only the level of support required to make their project commercially viable, while helping ensure value for money for NSW electricity customers.

LTESAs are important in supporting project delivery, but they do not guarantee that a project will be built. As revenue support mechanisms, they do not address all development risks or milestones, such as planning, permitting, or grid connection.

Bidding for an LTESA

LTESA tenders are run through a reverse auction process.

Proponents must submit evidence addressing the relevant eligibility and merit criteria for each tender. This includes non-financial information used to assess project deliverability, system benefits, organisational capability, and social value.

Financial value is assessed by considering a project’s forecast benefits to NSW consumers against the expected cost of support under the LTESA. ASL will only support projects where they are determined to be in the long-term financial interests of NSW electricity customers.

When bidding for an LTESA, proponents should carefully consider the level of revenue support required to ensure their project is commercially viable and can be delivered. LTESAs are not open to renegotiation once executed. Proponents should ensure bid prices are robust and reflect the project’s efficient financing and delivery requirements.