The Australian Government has awarded contracts to 20 renewable energy and storage projects, surpassing the initial 6GW target under the fourth round of the Capacity Investment Scheme.
The Australian Federal Government has released the results of the fourth round of tenders for the Capacity Investment Scheme, a national mechanism to support investment in low-emission energy infrastructure. This cycle allowed the award of 20 projects for a cumulative capacity of 6.6GW, beyond the target threshold set at 6GW.
Hybrid projects dominate allocations
Among the 20 projects selected, 12 combine renewable production – solar or wind – and battery storage systems, together representing more than 3,500MW of capacity. This type of configuration makes it possible to secure supply and smooth out the production variability inherent to intermittent sources. The other projects focus solely on electricity production without an integrated storage solution.
Several proposals included commitments to local content, with projects planning to use Australian steel, including one incorporating 100% domestic materials. Three initiatives integrate revenue sharing mechanisms with First Nations indigenous communities. Other projects have included commitments in their planning in terms of subcontracting, training and workforce development for these communities.
Multi-state implementation and community measures
The projects are spread across several territories. In New South Wales these include Bendemeer Energy Hub, Dinawan Wind Farm Stage 1, Liverpool Range Wind Stage 1, Merino Solar Farm, Middlebrook Solar Farm and Tallawang Solar Hybrid. In Victoria, contracts were awarded to Corop Solar Farm and BESS, Derby Solar Project, Hexham Wind Farm and Nowingi Solar Power Station.
In South Australia, projects include Bundey BESS and Solar, Carmody’s Hill Wind Farm and Willogoleche 2 Wind Farm. Other sites are also planned in Tasmania and Queensland. Ten projects include energy rebate schemes for local communities. One provides for the installation of photovoltaic panels on residential and school buildings, another the commissioning of a charging station for electric vehicles.
New calls for tenders planned by the end of 2025
The release of the results comes as two additional tenders have opened in Western Australia: Tender 5 (WEM Generation) and Tender 6 (WEM Dispatchable), with applications closing on November 7. Two additional national calls for tenders are scheduled for the coming months: Tender 7 (NEM Generation) expected by the end of the month and Tender 8 (NEM Dispatchable Capacity) in November. Other towers are planned for 2026.
As part of its climate strategy, the Australian government is targeting a reduction in greenhouse gas emissions of 62 to 70% compared to 2005 levels by 2035.
