Australia Opens CIS Tender 4 With 6 GW Renewable Energy Capacity

Australia continues to advance its Capacity Investment Scheme (CIS) under which it has opened tender round 4, seeking 6 GW of renewable energy generation in the National Electricity Market (NEM). It is now accepting registrations for this round.  

The 6 GW of indicative capacity is divided between various jurisdictions with New South Wales (NSW) getting the lion’s share of 2.2 GW, followed by Victoria with 1.4 GW. Both South Australia and Tasmania get 300 MW each. 

Eligible projects from all NEM jurisdictions, including the Australian Capital Territory (ACT) and Queensland, can submit bids for competitive assessment from the unallocated portion of the CIS tender 4 (1.8 GW). 

Winning projects will need to start commercial operations by December 31, 2029.  

According to the market brief on tender 4 released, winning projects will enter bilateral Renewable Energy Transformation Agreements (RETA) with the Australian government and the respective jurisdictions.  

The call for registration to CIS tender 4 opened on November 28, 2024 on AEMO Services website. It will close on February 11, 2025 for registrations. Project bids will tentatively be invited on December 13, 2024 with a submission deadline of February 18, 2025 under stage A. Stage B bids will be invited in May next year and successful bids announced in the following October. 

Australia had earlier announced that it targets to install 32 GW of dispatchable and variable capacity under the CIS arrangement to accelerate renewable energy generation in the country’s electricity mix including wind, solar and battery storage technologies. Divided as 9 GW of clean dispatchable capacity, and 23 GW of variable capacity, winners will secure revenue support from the government with an agreed revenue floor and ceiling (see Australia Announces Plans To Auction 32 GW RE Capacity).  

Tender 1 also sought 6 GW capacity for which AEMO received 41 GW of capacity registrations, and 27 GW under stage A with 16,500 MWh of hybrid storage capacity. Tenders 2 and 3 relate to a dispatchable capacity of 2,000 MWh/500 MW, and 16,000 MWh/4 GW, respectively.   

Recently, the federal government set up an independent committee to conduct an in-depth review of the country’s electricity system to better prepare for a renewable energy powered grid as old coal power plants retire (see Australia To Review National Energy Market To Accommodate Renewable Energy).