Australia’s government has announced plans to conduct four new Capacity Investment Scheme (CIS) tenders for solar, wind and storage by the end of 2025, as part of its efforts to deliver 32 GW of new variable renewable energy capacity by the end of the decade. Under the CIS, the government will underwrite projects to deliver at least 23 GW of renewable generation capacity and a further 9 GW of dispatchable capacity, including technologies like batteries.
The tenders will target both the National Electricity Market (NEM), which covers Australia’s eastern and southern states as well as Tasmania, and the Wholesale Electricity Market (WEM), which serves Western Australia. According to the government, two tenders will be launched in August 2025 under the WEM: one for new generation capacity (solar and wind) and another for dispatchable capacity. These will be followed by a generation-focused tender for the NEM in September 2025, and a dispatchable capacity tender for the NEM in November 2025.
The CIS is a central component of Australia’s energy transition strategy, aiming to reach 82% renewable electricity by 2030 while maintaining energy system reliability as the country’s coal-fired generators approach retirement.
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