The Australian government has announced the opening of two new Capacity Investment Scheme (CIS) tenders, promising a cleaner and more reliable energy future for hundreds of thousands of Western Australian households.
The scheme is designed to accelerate investment in renewable energy and firming projects in the south-west region’s Wholesale Electricity Market (WEM), including Perth.
These latest tender rounds are expected to unlock approximately $4 billion of private investment, adding 1.6 gigawatts (GW) of renewable generation capacity backed by 2.4 gigawatt-hours (GWh) of clean dispatchable capacity to the WEM.
This new energy output is sufficient to power over 900,000 homes annually and provide storage to cover peak demand for 550,000 households for four hours.
Minister for Climate Change and Energy, The Hon Chris Bowen MP, stated: “These latest tenders will deliver certainty of progress to the Western Australian market and households with support for cleaner, more reliable renewable energy.
“We know the Capacity Investment Scheme is working, with investors and developers outbidding each other for the chance to deliver even more renewable energy for Western Australia this decade.”
The tender process will last 10 weeks, with bids evaluated on deliverability, value for money, contributions to grid reliability, engagement with First Nations communities, and commitments to shared benefits.
Successful projects will contribute to Western Australia’s target under the CIS of at least 2.3 GW of renewable generation and 4.4 GWh of dispatchable capacity, complementing earlier successful tenders.
Assistant Minister for Climate Change and Energy, The Hon Josh Wilson MP, highlighted the significance of the projects, stating: “These new tenders for renewable energy generation and storage will make a significant contribution to meeting Western Australia’s energy needs as our state exits coal-fired power generation.
“With more than two in five WA households generating power from their own rooftop systems, it’s clear that Western Australians have embraced renewable energy and welcome the work of the government and the energy sector to deliver the clean energy transition.”
Wilson added: “The Albanese government is committed to promoting an orderly net zero economic transformation for Australia, its regions, industries, workers, and communities, while ensuring that WA’s stand-alone grid provides the cleaner, cheaper, secure, and reliable energy that energy customers rightly expect.
“The CIS ensures that developers put forward strong and contractually binding social licence commitments that benefit First Nations and regional communities, make use of local content and Australian steel while providing local employment, apprenticeships and training opportunities for Australian workers.”
Western Australia’s Minister for Energy and Decarbonisation, The Hon Amber-Jade Sanderson, reinforced the state’s progress, stating: “Western Australia’s clean energy transition is well underway, with a mix of public and private renewable energy generation and storage projects paving the way for us to exit State-owned coal generation by 2030.
“This latest Capacity Investment Scheme tender provides investors with confidence to build projects here – backing the delivery of clean, renewable power for Western Australian households and businesses.”
Sanderson also noted: “CIS is already enhancing our energy transition, and adding a further 1.6 gigawatts of renewable generation will further strengthen our clean energy credentials and boost the capacity of our standalone our energy grid.”
The CIS forms a key part of the Albanese government’s ambitious plan to deliver 82 per cent renewables and 40 GW of new renewable capacity nationally by 2030, supported by gas, storage, and transmission infrastructure.
Previous CIS rounds have resulted in 19 executed agreements worth 5.85 GW of capacity nationally, with announced projects promising around $15 billion in local employment, expenditure, and community and First Nations benefits.
Bidding under the current tender round closes on 7 November 2025. Tender guidelines and details are available on the Australian Solar Library website.
This substantial injection of renewable energy capacity marks a pivotal step for Western Australia in achieving a cleaner, more sustainable energy system for homes and businesses as coal-fired power phases out.
