The Australian government’s Capacity Investment Scheme (CIS) has delivered a further boost to Australia’s dispatchable, clean energy capability, locking in more large-scale battery storage than initially sought through its latest tender.
CIS Tender 3 targeted 4 GW (16 GWh) of dispatchable capacity in the National Electricity Market (NEM) but was met with strong demand, receiving 124 bids totalling around 34 GW (135 GWh).
Sixteen successful lithium-ion battery projects were awarded, representing 4.13 GW (15.37 GWh) of storage to be delivered by the end of 2029 — enough to support the peak load needs of more than 3.5 million NEM households.
The projects are set to provide significant economic and social benefits, including an estimated 1,900 jobs during construction phases and more than 100 operations and maintenance roles across the 20-year lifespan of the assets.
Local investment commitments are valued at $3.8 billion, with $218.8 million in benefits allocated to First Nations communities, $36 million in shared community programs and $33.6 million earmarked for Australian-made steel.
Two projects have secured First Nations equity-sharing agreements, while others include commitments to subcontracting with First Nations-owned businesses, workforce training and participation initiatives.
Minister for Climate Change and Energy Chris Bowen said the results highlighted the government’s progress in rebuilding the nation’s energy system.
“This is the latest step in the Albanese government’s plan to rebuild Australia’s energy grid into the modern, reliable and fairer system we need,” Bowen said.
“In three short years our reliable renewables plan has unlocked record levels of investment in Australia’s energy grid, while delivering good jobs, training, and community benefits to locals hosting this critical new infrastructure, that’s increasingly Australian-made.
“Our practical approach to energy is harnessing the nation’s natural advantages to deliver more affordable and more reliable energy for our country, powering new jobs in our regions and suburbs and securing billions of dollars in global investment.”
Partnerships with TAFEs, scholarship programs, and STEM education in schools will also support skills development across the renewable energy sector.
The CIS program has now delivered 19 project agreements nationally, representing 5.85 GW of firmed renewable capacity.
In total, projects executed under the scheme to date are committed to delivering $10.5 billion in First Nations and community benefits, local content and employment.
