Long-Term Energy Service Agreements (LTESAs) are contracts designed to give renewable energy, firming and long-duration storage projects more financial certainty in New South Wales. They work by offering projects the option to sell electricity at a fixed minimum price to a government-appointed Scheme Financial Vehicle, helping to de-risk financing and attract private capital. The agreements are part of the state’s Electricity Infrastructure Investment Safeguard, which aims to support orderly investment in new generation and storage as the grid transitions to more renewables. Projects located in Renewable Energy Zones (REZs) are expected to be most competitive, though those outside a REZ can still participate if they demonstrate outstanding merit. LTESAs are awarded through competitive tenders run by the Consumer Trustee, ensuring projects are selected transparently and deliver value for the energy system and consumers.