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Australia launches 1.8GW renewable energy tender

Created at 25 Aug · 11:56 AM1 source↑ Market-relevant
IN SHORT

The Australian government is opening a new tender for 1.8GW of renewable energy capacity in Western Australia under its Capacity Investment Scheme. Bids will be accepted from August 27 to October 22, with results expected in March 2027.

Key Numbers

1.8GWnew renewable energy capacity to be tendered
2030construction deadline for projects
27 August-22 Octoberbid registration period
March 2027results announcement date
30MWminimum nameplate capacity per project
180MWreserved for First Nations groups
5pcoptional equity or revenue sharing with First Nations partners
40GWtotal renewable capacity Australia aims to tender by 2026-27
82pcrenewable electricity target for 2030
22.7GWclean generation awarded in CIS tenders 1-8
1.62GW/62.7GWhenergy storage awarded in CIS tenders 1-8

Who's Involved

Australian government
opening new renewable energy tender
ASL
national renewables services group and tender operator
First Nations groups
minimum capacity reserved for them in tender

↳ Why This Matters

This tender is a significant step towards Australia's ambitious renewable energy targets, aiming to bolster grid reliability and support the transition away from fossil fuels, while also incorporating provisions for First Nations participation.

Key facts

  • Australia will tender 1.8GW of new renewable energy capacity in Western Australia.
  • The tender is part of the national Capacity Investment Scheme (CIS).
  • Bids will be accepted between August 27 and October 22.
  • Results are expected in March 2027.
  • A minimum of 180MW is reserved for First Nations groups.
  • Projects must be deliverable and able to attract financing.

The Australian government is launching a new tender for 1.8GW of renewable energy capacity in Western Australia as part of its national Capacity Investment Scheme (CIS). Projects under this tender are expected to be completed by 2030 and will contribute to the Wholesale Electricity Market (WEM).

Registrations for bids will open on August 27 and close on October 22, with results anticipated in March 2027. While specific generation types have not yet been detailed, eligible projects can include solar, wind, and hydropower, with a minimum nameplate capacity of 30MW per project.

For the first time, project proponents must join the government's new Developer Rating Scheme, which assesses credentials to enhance community confidence. A minimum of 180MW is specifically reserved for native First Nations groups, with optional equity or revenue sharing arrangements encouraged. Projects will also need to comply with WA's Reserve Capacity Mechanism to ensure reliable power supply.

The government stated that this tender will place a greater emphasis on project deliverability, including their capacity to secure financing. To date, CIS tenders have already supported 1.9GW of renewable generation and 482MW of storage in Western Australia, with two earlier projects totaling 250MW currently under construction.

Australia's broader goal is to tender 40GW of renewable generation and dispatchable capacity under the CIS by 2026-27 to meet its target of 82% renewable electricity by 2030. Previous CIS tenders have awarded 22.7GW of clean generation and approximately 1.62GW/62.7GWh of energy storage.

Frequently asked questions

The CIS is Australia's national renewable energy program designed to encourage the development of new renewable generation and storage capacity.

The WEM is one of the two main power grids in Australia, primarily serving Western Australia.

Proponents must join the new Developer Rating Scheme, meet a minimum project capacity of 30MW, and ensure projects can be delivered and financed. Joining WA's Reserve Capacity Mechanism is also required.

What Happens Next

01Bids can be entered from August 27 to October 22.
02Results for the tender are due in March 2027.
03Tender guidelines detailing specific generation types will be released on August 27.
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How It Developed

Australia announced a new tender for 1.8GW of renewable energy capacity in Western Australia.
The tender is part of the national renewable energy Capacity Investment Scheme (CIS).
Projects must be built by 2030 and will feed into the Wholesale Electricity Market (WEM).
Registrations and bids will be accepted from August 27 to October 22.
Results for the tender are expected in March 2027.
A minimum of 180MW is reserved for native First Nations groups.
Projects must join WA's Reserve Capacity Mechanism for reliability.
The tender will emphasize project deliverability and financing ability.

Sources

T1
Australia to open 1.8GW renewables tenderArgus Media

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