Australia has, for example, completed its largest dispatchable capacity procurement in the Capacity Investment Scheme, awarding 4.13 GW/15.37 GWh of new battery energy storage projects. Third CIS tender saw overwhelming participation with 124 bids of approximately 34 GW/135 GWh, which is more than 8-fold of the targeted capacity. All 16 successful lithium-ion battery projects will provide capacity by 2029, enough storage to meet peak load for more than 3.5 million households across the National Electricity Market.
Record-breaking tender demonstrates massive market appetite
Australia’s Capacity Investment Scheme (CIS) has awarded 4.13GW/15.37GWh of battery storage capacity in its third tender round, after attracting around 135GWh of bids. The third CIS tender, which targeted 4GW/16GWh of dispatchable capacity in the National Electricity Market (NEM), drew 124 bids totalling approximately 34GW/135GWh, demonstrating an oversubscription ratio exceeding 8:1.
Australia’s minister for climate change and energy, Chris Bowen, said the tender results represented “another massive boost to the nation’s dispatchable, clean energy capability” and would deliver substantial economic benefits beyond the energy sector. “These projects will create thousands of jobs in regional communities while providing the flexible capacity needed to support our transition to renewables,” Bowen said.
Successful projects span all mainland NEM states
The 16 successful projects feature an average duration of 3.72 hours. The winning bids include several battery energy storage systems (BESS) exceeding 500MWh in capacity, with at least two projects reaching the 1GWh threshold. The geographical distribution of successful projects spans all mainland NEM states, with concentrations in areas experiencing network constraints and high renewable energy penetration.
Major developers secure multiple project awards
The biggest one among the awarded projects in CIS tender 3 was the 400 MW/1600 MWh Teebar battery in Queensland, proposed by Atmos Renewables. Melbourne-headquartered renewables developer Equis won three projects – 200 MW/800 MWh Koolunga in South Australia, 200 MW/800 MWh Lower Wonga in Queensland, and 150 MW/ 300 MWh Calala in New South Wales.
Akaysha Energy is among other notable winners. The developer secured CIS support for the 275 MW/1100 MWh Deer Park BESS in Victoria, previously under development by Lumea, and its 195 MW/780 MWh Ulinda Park BESS Expansion in Queensland, bringing the expanded BESS project to 350 MW/1078 MWh. Other winning bids came from AMPYR Australia, TotalEnergies, Potentia, ACEnergy, Lightsource bp, and Valent Energy.
Community benefits exceed AU$4 billion in commitments
The successful projects have committed to delivering economic benefits beyond their primary energy storage function. According to government figures, these projects will create approximately 5,800 direct jobs during construction and 420 ongoing operational positions. The 16 projects are estimated to comprise AU3.8billion(US2.54 billion) in local content, AU218.8million in First Nations benefits, AU36 million in shared community benefits, and AU$33.6 million of local steel.
Revenue certainty drives investment acceleration
The successful projects will enter into a Capacity Investment Scheme Agreement (CISA), which provides a revenue safety net through an underwriting approach. This financial structure provides successful projects with a floor price for capacity while capping potential windfall profits during high-price events. It reduces investment risk while protecting consumers from excessive costs during market volatility.
Paul Curnow, managing director and chief commercial officer at Akaysha Energy, emphasised the significance of the CIS scheme. “These awards don’t just underline the critical role of big batteries in Australia’s energy future; they enhance revenue certainty, unlock investment, and enable us to deliver faster,” Curnow said.
Meanwhile, Atmos Renewables said that the selection of its Teebar BESS project will provide a clear pathway for constructing this 400MW/1,600MWh energy asset in Queensland.
The overwhelming response with 8:1 oversubscription is an interpretation of strong investor appetite for dispatchable renewable capacity. These 16 successful projects will have a significant impact on improving grid stability while providing profound economic solutions for the regional communities, positioning Australia as a world leader in the large-scale deployment of energy storage and integration of renewable energy.