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Australia's CIS program: 6GW tender receives over 40GW of project registrations

published: 2024-06-24 17:52

More than 40GW of renewable energy project registrations have been received in the first tender for 6GW of installed capacity under the National Capacity Investment Scheme (CIS), as confirmed by the Commonwealth Minister for Energy, Chris Bowen.The CIS program is designed to increase the amount of dispatchable renewable energy capacity available in Australia to support Australia's The CIS program is designed to increase Australia's dispatchable renewable energy capacity to support Australia's clean energy transition and ensure reliability in Australia's changing energy market. This demonstrates investor confidence in the CIS program.

At least 2.2GW of the 6GW first round of national tenders will be allocated to New South Wales, while Victoria has been guaranteed at least 1.4GW, and Tasmania and South Australia have been awarded 300MW each.The remaining 1.8GW of renewable capacity will be allocated to NEM jurisdictions based on an assessment of the merits of the projects.

Under the CIS program, until 2027, the Australian government will conduct tenders every six months. It aims to add 9GW of dispatchable capacity and 23GW of variable capacity by 2030 to fill the gap between the retirement of aging coal-fired power plants.

The successful project will enter into a Capacity Investment Scheme Agreement (CISA) with the Commonwealth Bank of Australia to agree a revenue cap and floor. The CISA will provide revenue support if project revenues fall below the agreed floor. In turn, if the return exceeds the agreed cap, the project will be required to surrender a percentage of the return to the Australian Government. This provides a long-term safety net of returns, reduces financial risk for investors and encourages additional investment when and where it is needed.

The first round of bidding registration closed on June 19, 2024, and bidding for the project is scheduled to close on July 1, 2024. The winning bid is expected to be announced in December 2024.

Source: https://mp.weixin.qq.com/s/q9BHwJ9oiPEmP9C_Ythkcw

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