Long-Term Energy Service Agreements
The Consumer Trustee will run competitive tender processes to offer Long-Term Energy Service Agreements (LTESAs) to project developers. LTESAs will provide revenue certainty for private investment in new renewable energy generation, firming and long-duration storage, which will help secure finance for project construction.
LTESAs will provide generators with the option to sell their electricity at an agreed minimum fixed price to a Scheme Financial Vehicle that will be appointed by the NSW Government. LTESAs will also be entered into with owners of firming and long-duration storage projects.
Renewable energy generation projects that are part of a REZ will have an advantage when competing for LTESAs projects that are not part of a REZ. This is because renewable energy generation projects that are not part of a REZ must satisfy the Consumer Trustee that they have ‘outstanding merit’ in their bids for LTESAs.
LTESAs are part of the Electricity Infrastructure Investment Safeguard, a framework to ensure orderly and efficient investment to meet the needs of the electricity system. Under the Electricity Infrastructure Investment Safeguard, the Consumer Trustee will ensure planning for the generation and firming capacity required in NSW will be undertaken in a structured and coordinated manner.
It is expected the first competitive tender processes will take place in 2022.
Find out more on the Consumer Trustee website.