Australia’s largest renewable energy tender unveiled

The Australian Government revealed a large single tender for renewable energy in the country’s history, with the first auction under the banner of the Reliable Renewables Plan set for late May.

The National Capacity Investment Scheme tender will target a staggering 6 GW of fresh variable renewable energy projects specifically tailored for the National Electricity Market.

In particular, the Albanese and Minns Governments have inked an agreement that will see the allocation of at least 2.2 gigawatts of renewable energy dedicated solely to NSW, a move projected to power over 1 million households in the state.

Furthermore, a portion of 300MW for variable renewable energy will be exclusively earmarked for projects in South Australia, highlighting the government’s efforts to foster renewable energy development across multiple regions.

“We are getting on with the job of delivering practical solutions to keep the lights on for households and businesses using the cheapest, cleanest form of power – reliable renewable energy,” stated Minister for Climate Change and Energy Chris Bowen.

Meanwhile, NSW Minister for Climate Change and Energy Penny Sharpe emphasised that the state is at the forefront of driving the energy transition.

She highlighted the progress made, stating that NSW is already halfway towards achieving its generation target and a quarter of the way towards meeting its storage target.

Building upon the success of the inaugural CIS/NSW Roadmap pilot tender conducted in 2023, which yielded six battery and virtual power plant projects with a capacity exceeding 1GW in NSW, the governments are poised for further collaboration.

Plans are underway to streamline a unified tender process for generation infrastructure under the CIS and NSW Roadmap, commencing in November of the current year.

The integration of NSW projects into the first CIS tender will supersede the previously scheduled Q2 2024 generation Long-Term Energy Service Agreements tender under the NSW Roadmap.

Eligible generation projects will now have the opportunity to participate in the CIS tender, signalling a strategic alignment of initiatives to bolster renewable energy initiatives.

“I look forward to working with the Australian Government over the next few months to finalise the ongoing implementation of the CIS in NSW,” Sharpe said.

NSW will forge ahead with its Q2 2024 LTESA tender for long-duration storage infrastructure and the allocation of access rights for NSW’s Central West Orana and South-West Renewable Energy Zones.

Emphasising a collaborative approach towards realising a Renewable Energy Transformation Agreement, the Albanese Government has guaranteed a minimum 300MW allocation in South Australia.

Subject to a final agreement between the Commonwealth and South Australian Governments, this commitment aims to catalyse investment in strategic electricity reserves and drive the development of new renewables projects.

Looking ahead, the first round of tenders for Western Australian projects, targeting 500MW of dispatchable power through storage for renewables, is set to commence mid-year.

This move, subject to consultation and final agreement, promises to cater to the energy needs of approximately 45,000 homes in the region.

To provide stakeholders with comprehensive insights into the May tender, a market briefing is slated for early May, outlining the tender process in detail. Subsequent tender rounds in the NEM are scheduled to occur approximately every six months until 2027.