Capacity Investment Scheme NEM Generation

About the Tender

Successful outcomes of CIS Tender 4 – NEM Generation have 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 20 projects, which will provide 6.6 GW of clean generation to the National Electricity Market (NEM).

Of the successful projects, 12 hybrid projects have been selected, which will also provide storage capacity of 11.4 GWh.

Successful projects in CIS Tender 4 – NEM Generation

The tender opened on 13 December 2024 and sought an indicative 6 GW of generation capacity that will be operational by 2030. This includes the following minimum NEM jurisdictional targets subject to the assessed merit of Projects.:

• NSW – 2.2 GW
• VIC – 1.4 GW
• SA – 0.3 GW
• TAS – 0.3 GW

The remaining 1.8 GW of renewable energy generation was to be allocated to Projects across the NEM, based on the merit of the Projects.

In total, 20 projects have been successful under the tender and will provide a combined 6.6 GW of generation, (including 12 hybrid projects, providing storage capacity of 11.4 GWh) to the NEM, with a breakdown per jurisdiction of:

• 2.6 GW of generation and 3,913 MWh of storage to New South Wales (6 projects),
• 2.0 GW of generation and 4,217 MWh of storage to Queensland (6 projects),
• 1.2 GW of generation and 2,114 MWh of storage to Victoria (4 projects),
• 595 MW of generation and 1,200 MWh of storage to South Australia (3 projects) and
• 224 MW of generation to Tasmania (1 project).

Benefits of the selected projects

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:

• $291 million of shared benefits for their local communities.
• $348 million worth of initiatives for local First Nations groups.
• Over $17 billion in local content.

CIS T4 – NEM Generation Assessment Summary Market Brief

The CIS Tender 4 – NEM Generation Assessment Summary Market Brief is now available. This document provides feedback on assessment outcomes for the tender.

The purpose of this summary is to provide feedback to Proponents to encourage participation in future tenders and to assist Proponents to improve bids in future tenders.

Click here to view the CIS T4 – NEM Generation Assessment Summary Market Brief.

About AEMO and ASL's Role

AEMO and ASL 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. ASL 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.