The Australian Department of Climate Change, Energy, the Environment and Water (DCCEEW) has selected 19 renewable energy projects totaling 6.38 GW, including eight hybrid power projects of 3.6 GWh under the Capacity Investment Scheme (CIS) Tender 1. The clean energy generated through these projects will be connected to the National Electricity Market (NEM).

The projects will power three million households, with the following generation allocation per jurisdiction:

• New South Wales: 3.7 GW of generation and 904 MWh of storage
• Victoria: 1.6 GW of generation and 1,458 MWh of storage
• Queensland: 550 MW of generation and 1,200 MWh of storage
• South Australia: 574 MW of generation

The tender was issued in May 2024.

Of the projects awarded, standalone solar and wind amounted to 1,651 MW, and 3,040 MW, respectively. A wind plus battery energy storage systems (BESS) (585 MW/800 MWh) and seven solar plus BESS projects (1099 MW/2,762 MWh) were also awarded. Over 40% of projects included BESS to ensure energy reliability during periods when solar or wind energy generation was low.

Successful bidders included Gentari, Elgin Energy, Lightsource BP, Edify Energy, Windlab, Risen Energy, CIMIC Group company Pacific Partnerships, European Energy Australia, Neoen Australia, Tilt Renewables, Squadron Energy and ACEN.

Most of these projects are expected to begin operation between 2026 and 2028.

The projects are set to deliver around $660 million of shared benefits for their local communities, $280 million worth of initiatives each for local communities and local First Nations groups, over $14 billion in local content, and $60 million towards local employment.

The CIS aims to incentivize the deployment of 32 GW of renewable and clean dispatchable capacity by 2030. The Australian government plans to reach a target of 82% renewable electricity by 2030.

The CIS tender will involve regular competitive tender processes held approximately every six months until 2027. It will seek to deliver 23 GW of renewable and 9 GW of clean dispatchable capacity.

The CIS agreement will provide partial revenue support of up to 90% if a project’s revenue falls below the agreed floor. It will also require projects to pay up to 50% of income to the Australian government. If revenue exceeds an agreed ceiling, these payments will be subject to an annual payment cap.

In November, the Australian Energy Market Operator Services launched registrations for the CIS Tender 4 to facilitate the development of 6 GW of renewable energy projects within Australia’s NEM.

Last December, Australia invited bids to develop up to 600 MW of four-hour equivalent or 2,400 MWh energy storage projects in South Australia or Victoria.