The Australian Government has announced the largest ever single tender for renewable energy in Australia, aiming to produce 6GW of new variable renewable energy projects for the National Electricity Market (NEM).
The first auction is scheduled for late May and will take place through the Capacity Investment Scheme (CIS).
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The CIS is delivering 32GW of new energy infrastructure in total across Australia between now and 2030. The plan will transform Australia’s energy system to a reliable 82% renewable grid, supported by gas, storage and transmission.
Through the CIS, the Australian Government will seek competitive tender bids for renewable capacity and clean dispatchable capacity projects to deliver an additional 32GW of capacity by 2030 and the Australian Government’s 82% renewable electricity by 2030 target.
A market briefing on the May tender will be released in early May outlining the tender process. Tender rounds will run in the NEM approximately every six months until 2027.
New South Wales
The Australian and NSW governments also signed a new deal to deliver more reliable renewables for NSW households and businesses. At least 2.2GW of the 6GW produced through the national tender will be allocated specifically for NSW, enough to power over 1 million households.
The NSW agreement builds on the success of the first CIS/NSW Roadmap pilot tender conducted in 2023, which is delivering six battery and virtual power plant projects with more than 1GW of capacity in NSW and creating 400 jobs.
Both governments will continue to work together to finalise a Renewable Energy Transformation Agreement and advance a single combined tender process for generation infrastructure under the CIS and NSW Roadmap from November this year.
South Australia
An allocation of 300MW for variable renewable energy will also be dedicated to projects delivered in South Australia.
The government’s guarantee of a minimum 300MW in SA is subject to final agreement between the Australian and South Australian governments and will encourage investment in strategic electricity reserves as well as deliver new renewables projects that ensure improved reliability.
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Western Australia
The first round of tenders for Western Australian projects will open mid-year, subject to consultation and final agreement. The tenders will target 500MW of dispatchable power through storage for renewables, enough to power 45,000 homes.
Consultation on the Western Australia Wholesale Electricity Market (WEM) design paper closes on 6 May 2024.
