ASL sets 1,500 MW firming infrastructure target and opens consultation on future tender

13 October 2026

 

ASL has released its 2026 Firming Infrastructure Investment Objectives (IIO) Report and opened consultation on the proposed Firming Long-Term Energy Service Agreement (LTESA) product and future competitive tender.

The report is a plan for meeting the forecast reliability shortfall expected in NSW from 2033-34 following the expected retirement of the Bayswater and Vales Point power stations. It was prepared in response to a direction from the NSW Minister for Energy requiring ASL, in its role as the independent Consumer Trustee, to conduct a competitive tender for firming infrastructure.

The report establishes a development pathway for 1,500 MW of additional firming infrastructure to be fully commissioned and operational by the end of May 2033. Future projects will need to demonstrate three core characteristics:

• net energy contribution during periods of system stress
• dispatchable capacity when required
• sustained energy delivery for at least eight hours, and ideally longer.

This is the third Firming IIO Report prepared under the NSW Electricity Infrastructure Roadmap. It sets the development pathway and tender plan for the Roadmap’s next firming procurement. All projects from the Roadmap’s first firming tender are now operational and supporting reliability in NSW. The next firming tender will build on that portfolio and the experience gained, while addressing a different reliability need.

The core characteristics identified in the report differ from those underpinning previous firming tenders and have informed the proposed design of a future Firming LTESA product. ASL is seeking stakeholder feedback on the proposed product design, project eligibility requirements, assessment criteria and broader tender design considerations to ensure the tender framework is capable of supporting the infrastructure required to address the identified reliability need.

The tender will be open to any project capable of delivering the required reliability outcomes. While fuel-based generation, including gas-fired generation, is expected to be well placed to compete, the consultation is seeking feedback from all prospective proponents and stakeholders.

Renewable generation projects, including hybrid and long-duration storage (LDS) projects, remain best-placed to participate in generation and long-duration storage tenders set out in the 2025 IIO Report tender plan.

The competitive firming tender is expected to open in early 2027, following consideration of stakeholder feedback and finalisation of the Firming LTESA product and tender design.

Consultation is open from 13 October to 4 November 2026. Stakeholders can review the consultation materials, including the consultation paper and provide feedback through ASL’s website.

The 2026 IIO is available to read on ASL's website.

Quotes attributed to CEO Nevenka Codevelle

“The report gives industry an early signal of the firming infrastructure NSW is likely to need from 2033–34, including its scale, timing and required capabilities. This provides time for proponents to develop credible projects and establish a clear pathway to delivery.

“We are looking for projects that can add energy to the system, respond when required and sustain delivery through extended periods of system pressure. Projects will also need to demonstrate a credible pathway to becoming operational by the end of May 2033.

“The consultation will help ensure the Firming LTESA product and tender settings support projects capable of delivery. We want to hear from developers, investors and market participants about project readiness, technical capability and the practical requirements for bringing this infrastructure forward.

 

 

 

For more information

ASL Media I M 0403 706 438 I E [email protected]