The Australian government has announced a substantial expansion of its Capacity Investment Scheme (CIS), a primary initiative designed to mitigate investment risks in large-scale clean energy projects. The revised target aims to deliver an additional 40 gigawatts (GW) of renewable energy and storage capacity by 2030, a significant increase from the previous 32 GW goal.
The CIS is intended to expedite the deployment of clean energy infrastructure, aligning with Australia’s objective of achieving 82% renewable electricity by 2030. The programme involves soliciting competitive tender bids for underwriting contracts to support renewable energy generation, such as wind and solar, as well as dispatchable capacity like battery storage. This approach provides long-term revenue certainty, thereby reducing financial risks for investors.
With the enhancement of the scheme’s capacity, the CIS now targets 26 GW of renewable generation capacity and 14 GW of dispatchable capacity. This represents an increase from the previous goals set in 2023 of 23 GW and 9 GW, respectively.
To date, through six tenders, the programme is on track to deliver 18 GW of generation and dispatchable storage projects. Auctions under the CIS will continue to be conducted until 2027.
According to Australia’s Department of Climate Change, Energy, the Environment and Water (DCCEEW), the expansion in the scheme’s capacity is projected to support investments of approximately A$21 billion in storage capacity and A$52 billion in solar and wind technologies.
In a statement regarding the increase, the DCCEEW noted, “More CIS generation and storage capacity means that our energy grid will become more reliable as we transition to renewable electricity.”