In positive news from down under, the Australian national government has released the results from Tender 4. This project falls under the Capacity Investment Scheme, which is designed to support more domestic clean energy projects. This announcement is a big deal, both in itself and as a step towards meeting this country’s ambitious goal of getting to 82% renewable energy by 2030. In this most recent tender, the government has awarded contracts for 20 of the projects. These projects have a total capacity of 6.6 gigawatts (GW), surpassing the initial aim of 6 GW.
The Capacity Investment Scheme is an essential piece of policy to encourage the development of renewable energy projects around this great brown land. Through funding a diverse array of projects, it seeks to strengthen the nation’s energy resilience and efforts to lower greenhouse gas emissions. The projects receiving funding reflect a rich tapestry of strategies, stakeholder engagement and ties to Country, all while contributing to Australia’s national environmental priorities.
Details of the Awarded Projects
Of the 20 awarded projects, 12 feature advanced hybrid designs. These national projects demonstrated how battery storage can work efficiently alongside wind or solar electric power generation. In fact, these hybrid systems are on pace to deliver over 3,500 megawatts (MW) of combined capacity to the national grid. Pairing storage with renewable generation increases reliability. It does this while distributing energy most efficiently during peak demand.
Beyond capacity contributions, most local projects have suggested creating community energy rebate programs, which would be in the best interest of nearby residents. By ensuring energy production has a direct impact on benefiting communities, these initiatives help build wider acceptance and support for renewable projects.
To date, three of the awarded projects comprise revenue-sharing agreements with indigenous First Nations communities. This intentional strategy aims to foster inclusive, equitable economic opportunities for all and acknowledges the traditional custodians of this land. Other successful bids have committed to subcontracting, training, and workforce development partnerships with First Nations groups, promoting inclusive growth within these communities.
Commitment to Local Content and Sustainability
Many of these projects as well include a focus on local content and sustainable practices. Half of all the winners’ proposals featured the use of Australian steel, with one project even committing to 100% local steel input. By prioritising local materials, we contribute to the revival of Australian manufacturing. This strategy in turn cuts the carbon footprint associated with transportation and importation as well.
The federal government has committed to an ambitious emissions target of 62-70% below 2005 levels by 2035. Delivering these projects through Tender 4 will be critical to accomplishing this goal. We want to have the biggest bang for the buck with these works. By supporting renewable energy infrastructure, Australia is looking to move beyond a historical reliance on fossil fuels and to a more green energy future.
Future Tenders and Development Goals
Tender 7 (NEM Generation) will open later this month. At the same time, Tender 8 (NEM Dispatchable Capacity) is scheduled to be released in November of 2025. With the next tenders set to be released, it will significantly increase Australia’s renewable energy generation and storage capacity. Such an expansion will only lead to a more resilient energy system.