The Australian government has announced that the Capacity Investment Scheme (CIS) South Australia-Victoria tender is now open for bids.
The tender is seeking bids for energy generation and storage projects with up to 600MW/2,400MWh of dispatchable capacity. Projects must be located in South Australia or Victoria; have a minimum storage duration of two hours and a minimum capacity of 30MW; and must either store electricity purchased from the National Electricity Market (NEM), or from a fuel source that is an eligible renewable energy source, including solar, wind and hydro.
This tender will support 800MWh of projects in both South Australia and Victoria, with the remaining 800MWh of capacity to be allocated to either state. Selected projects will deliver “clean, dispatchable capacity to the electricity grid before the end of 2027”.
The Australian Energy Market Operator (AEMO), together with its subsidiary AEMO Services, will administer the tender on behalf of the Australian government and offer recommendations. After AEMO makes its recommendations, the Australian government will select the projects to receive revenue support under the CIS.
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Submission of project bids will end on 23 February 2024. The financial value of the bids will be assessed at the end of April 2024, and successful bids will be announced in the middle of next year.
Based on a Contracts for Difference (CfD) structure, the CIS has been described as one of the most significant developments ever seen in Australian electricity policy and the government has committed to underwriting 32GW of renewables through it.
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