The Australian government is rolling out the Capacity Investment Scheme (CIS), designed to back clean dispatchable capacity, to the states of Victoria and South Australia, it was announced on Wednesday.
A tender will be held seeking 600 MW of dispatchable capacity with four-hour equivalent duration across the two states. Successful dispatchable renewable generation and storage projects will be supported via long-term revenue underwriting under the CIS.
“Today’s announcement will dramatically improve energy security with large-scale batteries and other zero-emission technology in Victoria and South Australia that can quickly dispatch cleaner, cheaper renewable energy when needed,” said Australia’s Minister for Climate Change and Energy Chris Bowen
The CIS was unveiled in late 2022 and recently added a 550-MW CIS component to a firming tender in New South Wales.
The Victoria/South Australia tender will be conducted by AEMO as a two-stage process with bidders initially providing project details and shortlisted participants submitting a second-stage financial bid. More details will be released in the coming weeks, with registration for the tender to open in September.
The new capacity will help compensate for the planned closure of South Australia’s Torrens Island B power station in 2026 and the retirement of Victoria’s Yallourn Power Station in 2028.
Source: renewablesnow
