AEMO’s tender Round 4 (CWO REZ) requirements decoded

The Australian Energy Market Operator (AEMO) Services’ Tender Round 4 is now open, aligning with its 10-year Tender Plan. This significant tender welcomes eligible renewable generation projects throughout NSW, with a particular focus on projects connecting to existing transmission and distribution infrastructure. The tender will offer access rights for the Central-West Orana Renewable Energy Zone (CWO REZ).

Madrigal has a robust history in energy and renewables tenders. We have worked on and advises on projects up to nearly $2 billion. We have analysed the requirements and distilled the key requirements down to the following.

1. Minimising negative congestion impact and system service contribution

Prospective projects must present evidence showcasing minimal negative congestion impact on the NSW electricity network. Additionally, they should demonstrate the ability to provide essential system services and contribute to system strength.

2. Pathway to financial close and risk mitigation strategies

Projects need to exhibit a clear pathway to financing, achieving Financial Close in the near term, and a plan for reaching Commercial Operations Date (COD). A thorough understanding of associated risks and identified mitigants is crucial, substantiated through supporting documentation.

3. Securing land tenure rights and regulatory approvals

Projects must secure land tenure rights for the entire site, including the connection route. Progress toward obtaining all relevant planning and regulatory approvals, including any outstanding ones, should be evident.

4. Engagement with stakeholders and communities

Prospective projects should identify impacted communities and stakeholders, demonstrating an understanding of their views and addressing issues raised through evidence-backed local community engagement. First Nations best practice engagement and consideration of community values in site selection are essential.

5. Investment in local supply chain and sustainability practices

Commitments to invest in the local supply chain, support for R&D related to technology, and assistance for start-ups and social enterprises in renewable energy and First Nations communities are expected. Additionally, evidence of environmentally sustainable procurement throughout the supply chain and policies supporting SME subcontractors are crucial.

6. Workforce development and meeting baseline requirements

Projects should outline strategies for local workforce development, including pre-employment training and apprenticeship support. Demonstrating commitments to meet or exceed baseline requirements is necessary for successful participation.

As AEMO’s Tender Round 4 presents a valuable opportunity for renewable energy projects in NSW, Madrigal can provide expertise to interested parties. Understanding and meeting the key requirements outlined in this post will be instrumental in navigating this complex tender.

Contact us if you need help.

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