The Australian state government of New South Wales (NSW) has announced plans to launch a tender to procure up to 1.5 GW of new firming infrastructure, mostly gas-fired peaking capacity, to support electricity system reliability in the region (NSW government press release, 13/10/2026). Eligible projects will be required to provide flexible generation capacity capable of responding to periods of high demand and renewable generation shortfalls.
According to the NSW government, the tender process is expected to commence in 2027, and it is planned to be conducted by ASL, the independent NSW Consumer Trustee. Consultation has now opened on the proposed tender design. The early planning of the scheme has been designed specifically for gas-fired peaking generation, with battery storage projects not included within the procurement framework.
According to the NSW government, the state is expected to experience a reliability shortfall in 2033–2034 as more of its ageing coal-fired plants retire and the system becomes dominated by renewable energy. Although long-duration and pumped hydro should meet most reliability needs, the forecasts consider that they may occasionally be exceeded by electricity demand.
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