What is the Capacity Investment Scheme?
About the CIS
ASL conducts competitive tenders for Capacity Investment Scheme Agreements. Through the CIS, the Australian Government is seeking to deliver 40 GW of new capacity nationally, comprising:
- 26 GW of renewable generation capacity
- 14 GW of clean dispatchable capacity
This additional capacity is expected to:
- Help deliver the Australian Government’s 82% renewable electricity by 2030 target.
- Contribute to filling expected reliability gaps as ageing coal-fired power stations retire and electricity demand grows.
- Place downward pressure on electricity prices.
Tender process
CIS tenders are administered through a single-stage eligibility and merit assessment process. Bids are assessed against the eligibility requirements and merit criteria published in the tender guidelines for each tender.
Following the assessment process and the announcement of tender outcomes, the Australian Government enters negotiations with proponents. Subject to the satisfactory completion of negotiations, the Australian Government and the proponent enter into a Capacity Investment Scheme Agreement (CISA).
About the Capacity Investment Scheme Agreement
A CISA is a contract between a project proponent and the Australian Government, to provide revenue support once a project is built and fully operational. Whether and how much revenue support a project receives will depend on the revenue of the project and the floor and annual payment cap bid by the project during the tender.
CISAs are designed to support project revenues and mitigate exposure to future wholesale electricity price and offtake uncertainty. Projects do not receive support until they are fully operational.
*The footage above was taken at the following sites:
RWE Renewables, Limondale BESS
Squadron Energy, Sapphire Wind Farm
RWE Renewables, Limondale BESS
EnergyCo, Wellington Solar Farm
Akaysha Energy, Orana BESS
RWE Renewables, Limondale BESS
Squadron Energy, Sapphire Wind Farm