Capacity Investment Scheme NEM Generation

About the Tender

Tender 4 is a competitive process to secure an indicative target of 6 GW of renewable generation projects in the NEM.

Registrations are currently open and will close on 11 February 2025. The registration period has been extended for Tender 4 to accommodate the end of year shut-down period.

Stage A for Project Bids is open and Proponents have until 18 February 2025 to submit Project Bids for this Tender.

Registration is essential for Proponents to be able to submit a Project Bid in this Tender.

Projects that are unsuccessful in CIS Tender 1 – NEM Generation are able, and encouraged, to
participate in Tender 4.

Renewable Energy Transformation Agreement allocations

The Australian Government has released a Market Brief on Renewable Energy Transformation Agreement allocations by jurisdiction.

The brief provides information on CIS capacity allocations by jurisdictions, agreed through RETA negotiations. Proponents should read this brief to understand CIS allocations, including generation allocations by jurisdictions for Tender 4.

Tender Guidelines

Read the Tender Guidelines and draft Capacity Investment Scheme Agreement (CISA) for complete information on the process and criteria for Tender 4.

Changes to First Nations criteria

First Nations peoples are important partners in the clean energy transition. The Australian Government is embedding strong social licence policy expectations on Proponents who receive funding support. This is to deliver positive social and economic outcomes from CIS supported Projects.

The Australian Government has strengthened expectations on Proponents to deliver positive social and economic outcomes for First Nations people in CIS Tender 3, and this is continued in Tender 4.

There are standalone First Nations Merit Criteria (one criterion for engagement, and one criterion for benefits), which will allow a considered assessment of First Nations outcomes separately to outcomes for general host communities and other social licence commitments.

Hybrids

A hybrid project may choose to participate in either Tender 3 or Tender 4, but not both.

A hybrid project participating in Tender 4 should refer to the terms in the draft Generation CISA applicable to Hybrid Projects. Further guidance for hybrid bidding options and interactions with other CIS tenders is provided in the Tender Guidelines.

Q&A process for proponents

Registered proponents are able to submit questions during the tender Q&A process, through the Online Portal.

The Tender’s Q&A process is open and will close 11 February 2024 for participants to seek further clarification prior to submitting a bid. Please note the Q&A process will be paused from 20 December 2024 until 13 January 2025, with responses released thereafter.

For any general enquiries on the tender process please contact cis-tender-4@aemoservices.com.au.

Market Brief

The CIS Tender 4 Market Brief provides an overview, indicative timeframes and updates to policy
positions for Tender 4.

Information in the Market Brief is superseded with the publication of the Tender Guidelines and draft Capacity Investment Scheme Agreement (CISA). Please refer to the Tender Guidelines.

About current and future tenders

Stage B, Financial Value bids for CIS Tender 2 – WEM Dispatchable closed on 2 December 2024, with the Tender outcomes expected to be announced March 2025.

Stage A for Tender 3 closed on 18 December 2024, and Project Bids are being assessed.

The outcome of the CIS South Australia-Victoria Tender and the CIS Tender 1 – NEM Generation have been announced by the Australian Government and are subject to contract execution between the Proponents and the Australian Government.

About AEMO and AEMO Services’ Role

AEMO and AEMO Services have been engaged to support the roll-out of the Australian Government’s Capacity Investment Scheme (CIS) as tender delivery partner, bringing together our expertise in energy markets, modelling and infrastructure finance and procurement. AEMO Services is conducting the competitive tender process that will enable the Australian Government to determine which projects the scheme should support.

Our work will help the Australian Government secure reliability and security in energy supply for households and businesses across Australia. We will conduct a two-stage tender process, assessing overall project merit including social licence and financial value. The Australian Government Minister for Climate Change and Energy is the ultimate decision-maker, with a short-list of Projects recommended to the Australian Government for final approval.