Australia’s federal government has announced the single largest injection of renewable energy into Australia’s main electricity grid, greenlighting 19 new clean energy projects that will supply enough reliable electricity for four million households by 2030.
Underwritten by Tender 7 of the federal government’s flagship Capacity Investment Scheme (CIS), the projects will deliver 7.8 gigawatts of new renewable generation capacity and 7.9 gigawatt-hours of battery storage.
The wind, solar, and hybrid infrastructure projects will span New South Wales, Queensland, Tasmania, Victoria, and South Australia to shore up the National Electricity Market (NEM).
The massive building program is expected to unlock AU$17 billion in private investment and create an estimated 19,000 construction jobs, primarily in regional areas. To support local manufacturing, the projects will use more than AU$257 million worth of Australian steel.
The selected projects have also committed nearly AU$1.2 billion toward social licence initiatives. This funding will support local employment pathways, ranger initiatives, mental health programs, and capacity building designed to increase First Nations participation in the clean energy transition.
Minister for Climate Change and Energy Chris Bowen said the tender results prove the government is successfully delivering cheaper, cleaner, and more reliable electricity.
“The Capacity Investment Scheme is delivering what Australia needs: more cheap, clean energy, more jobs and more investment in our regions,” Bowen said.
“These projects will help keep the lights on, put downward pressure on power prices and cut emissions with the cheapest form of new energy, backed by storage.”
Assistant Minister for Climate Change and Energy, Josh Wilson added that the projects will help the electricity grid amid ongoing turbulence in global fuel markets..
“At a time when we’re all feeling the pinch from volatile fossil fuel markets, these investments are more important than ever, and, as demonstrated by the quality and volume of bids, the market is responding to the stability the CIS offers,” he said.
“Coming off the back of the two best quarters for renewable energy, and as we see coal and gas generation in decline, these 19 projects will help drive even more investment in cleaner, cheaper energy across the NEM.”
Building on Tender 7 exceeding its initial 5-gigawatt target, the government opened Tender 9 to market bids on May 25.
This next round targets a further 5 gigawatts of generation capacity across all NEM states except New South Wales.
Tender 9 also introduces a dedicated capacity allocation for projects that guarantee at least a 5 per cent equity or revenue-sharing arrangement with local First Nations communities.
