Expanded Capacity Investment Scheme consultation webinar
Join us for an interactive webinar on the proposed design and rollout of the expanded CIS on Friday, 8 March from 11.00am-12.30pm AEDT.
The Capacity Investment Scheme (CIS) provides a national framework to encourage new investment in renewable capacity, such as wind and solar, as well as clean dispatchable capacity, such as battery storage.
It aims to help build a more reliable, affordable and low-emissions energy system for all Australians.
The CIS involves the Australian Government seeking competitive tender bids for renewable capacity and clean dispatchable capacity projects to:
- deliver an additional 32 GW of capacity by 2030
- fill expected reliability gaps as ageing coal power stations exit
- deliver the Australian Government’s 82% renewable electricity by 2030 target.
The CIS will bring jobs and investment to regional communities, strengthen industries that create our sustainable future and support First Nations people to preserve their unique culture and heritage and remain on Country.
The Australian Government will provide revenue underwriting for successful CIS tender projects, with an agreed revenue ‘floor’ and ‘ceiling’. This will provide a long-term revenue safety-net that decreases financial risks for investors and encourages more investment when and where it is needed.
Revenue underwriting is being used domestically and globally to support investment into the energy transition.
Find out more about the design of the CIS.
Capacity Investment Scheme scope and size
On 23 November 2023, the Australian Government announced an expansion of the Capacity Investment Scheme to target a total of 32 GW of new capacity nationally, made up of:
- 23 GW of renewable capacity representing $52 billion in investment
- 9 GW of clean dispatchable capacity representing $15 billion in investment (an additional 7.9 GW to the 1.1 GW already in progress through the first stage of the CIS).
The expanded CIS will be rolled out from 2024 to 2027. There will be regular competitive tenders held approximately every six months, starting in April/May 2024.
14 GW of the CIS will be rolled out through a guaranteed national tender, with the remaining 18 GW delivered through Renewable Energy Transformation Agreements.
Renewable Energy Transformation Agreements
Building on the National Energy Transformation Partnership framework, the Australian Government will negotiate Renewable Energy Transformation Agreements with states and territories to achieve shared objectives in the renewable energy transformation.
This includes delivering around half of the capacity (18 of 32 GW) of the expanded CIS and ensuring investment through the CIS complements investment under state systems.
Through these agreements, states and territories will be asked to work with the Australian Government to:
- increase renewable energy generation to deliver the national target of 82% of electricity generation
- maintain electricity system reliability through an orderly and timely exit of ageing coal generators
- address non-market barriers to investment, such as planning and environmental approval bottlenecks.
First stage of the CIS
The first stage of the CIS was launched in 2023 and includes a:
- Commonwealth/NSW tender in partnership with the NSW Electricity Infrastructure Roadmap
- tender for dispatchable capacity in South Australia and Victoria.
Find out more about the first stage CIS tenders.
In 2023, the Department sought feedback on the:
- national rollout of tenders for 6 GW of dispatchable capacity
- draft term sheet for the South Australia and Victoria tender
- market brief for the South Australia and Victoria tender.
Consultation on expanded Capacity Investment Scheme
A consultation on the proposed design and national rollout of the expanded CIS is now open.
The consultation design paper provides more information on the CIS, including the:
- proposed implementation approach, tender schedule, and volumes
- proposed design for clean dispatchable and renewable generation revenue underwriting agreements
- tender process and assessment.
We’re seeking your views and input on the key elements of the design and approach outlined in the design paper. Feedback received will be used to inform the design of the CIS, including the Term Sheets, Tender Guidelines, and draft contract for the first national tender.
To have your say:
- read the design paper
- provide feedback by completing the survey on the consultation page
The consultation will close on 25 March 2024.
As part of the expanded CIS consultation, we will be holding a webinar on Friday, 8 March from 11.00am – 12.30pm AEDT.
In this interactive webinar we’ll discuss the CIS design paper and consultation in further detail. Attendees will have the opportunity to ask questions.
If you are not able to attend, a recording of the webinar will be made available afterwards on our website.
- Stage 1: Capacity Investment Scheme
- Information for proponents
- CIS Public Consultation Paper – August 2023
- CIS Public Consultation webinar - August 2023
- CIS Public Consultation webinar – August 2023 - Transcript (DOCX 106.71 KB)
- CIS Public Consultation webinar - August 2023 – Slides (PPTX 8 MB)
- CIS Public Consultation webinar - Peak Industry Body Briefing – August 2023 - Slides (PPTX 8 MB)