Capacity Investment Scheme NEM Generation

The outcome of the (CIS) Tender 1 – NEM Generation has been announced by the Australian Government, subject to contract execution between the project proponents and the Australian Government.

The Minister for Climate Change and Energy has selected 19 projects, which will provide generation capacity of 6.38 gigawatts (GW) of renewable energy to the National Electricity Market (NEM). Of the successful projects, 8 hybrid projects have been selected, which will also provide storage capacity of 3.6 GWh.

Successful projects in the CIS Tender 1 – NEM Generation

The tender opened on 31 May 2024 and sought an indicative 6 GW of renewable electricity generation across the National Electricity Market. This tender included minimum capacity targets across various jurisdictions, aiming for:

• New South Wales – 2.2 GW
• South Australia – 0.3 GW
• Victoria – 1.4 GW
• Tasmania – 0.3 GW

The remaining 1.8 GW of renewable capacity was to be allocated to projects across the NEM based on the merit of the projects.

Benefits of the selected projects

Collectively, the selected projects will provide:

• Power to 3 million households, with an allocation of generation per jurisdiction of:
  • 3.7 GW of generation and 904 MWh of storage to New South Wales,
  • 1.6 GW of generation and 1,458 MWh of storage to Victoria,
  • 550 MW of generation and 1,200 MWh of storage to Queensland and
  • 574 MW allocated to South Australia.
• The Projects selected have strong local community and First Nations engagement judged against the assessment criteria, as well as meaningful contractually binding social licence commitments. The selected projects are set to deliver around $660 million of shared benefits for their local communities.
• $280 million worth of initiatives for local First Nations groups
• Over $14 billion in local content and $60 million towards local employment.