To help the federal government achieve its target of 82% renewable energy by 2030, Australia's Capacity Investment Scheme (CIS) will be expanded to support 40 GW of new solar, wind, and dispatchable capacity.
Federal Energy Minister Chris Bowen will announce a 25% expansion of the Capacity Investment Scheme, which provides a minimum return guarantee for renewable energy generation and storage projects.
The CIS was initially designed to add 23 GW of solar and wind capacity and 9 GW of dispatchable capacity (including battery storage). This expansion will support an additional 3 GW of solar and wind capacity (enough to power more than 1 million homes) and 5 GW of dispatchable capacity or storage (capable of powering 4.6 million homes during peak demand).
In a speech to the Investor Group on Climate Change this week, Bowen said the expansion will increase the scheme's total target for new variable renewable energy capacity from 32 GW to 40 GW.
The most recent dispatchable capacity tender, seeking 16 GWh of dispatchable capacity for the National Electricity Market (NEM), attracted bids of 135 GWh; the latest tender, seeking 6 GW of capacity, attracted bids of over 25 GW.
This follows the release of the final 2024-2025 Generation Cost Report by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and the Australian Energy Market Operator (AEMO), which confirms that combined solar and wind remain the lowest-cost new generation technologies.
To help the federal government achieve its target of 82% renewable energy by 2030, Australia's Capacity Investment Scheme (CIS) will be expanded to support 40 GW of new solar, wind, and dispatchable capacity.
Federal Energy Minister Chris Bowen will announce a 25% expansion of the Capacity Investment Scheme, which provides a minimum return guarantee for renewable energy generation and storage projects.
The CIS was initially designed to add 23 GW of solar and wind capacity and 9 GW of dispatchable capacity (including battery storage). This expansion will support an additional 3 GW of solar and wind capacity (enough to power more than 1 million homes) and 5 GW of dispatchable capacity or storage (capable of powering 4.6 million homes during peak demand).
In a speech to the Investor Group on Climate Change this week, Bowen said the expansion will increase the scheme's total target for new variable renewable energy capacity from 32 GW to 40 GW.
The most recent dispatchable capacity tender, seeking 16 GWh of dispatchable capacity for the National Electricity Market (NEM), attracted bids of 135 GWh; the latest tender, seeking 6 GW of capacity, attracted bids of over 25 GW.
This follows the release of the final 2024-2025 Generation Cost Report by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and the Australian Energy Market Operator (AEMO), which confirms that combined solar and wind remain the lowest-cost new generation technologies.
