Australia Opens 5 GW Renewable Energy Tender Under Capacity Investment Scheme

The Australian Government has officially launched applications for Capacity Investment Scheme (CIS) Tender 9, aiming to add around 5 GW of new renewable energy generation capacity across the National Electricity Market (NEM). The tender is being administered by the Australian Energy Market Operator (AEMO) along with its subsidiary AusEnergy Services Limited. The initiative forms a major part of Australia’s broader clean energy strategy, which targets the addition of 40 GW of new generation and storage capacity while supporting the country’s goal of achieving an electricity grid powered by 82 percent renewable energy by 2030.

The scheme has been designed to improve grid reliability as several aging coal-fired power stations prepare to retire over the coming years. At the same time, the government expects the program to support lower electricity prices for consumers by encouraging investment in new renewable generation projects.

Under Tender 9, different states have been assigned regional targets to align with Renewable Energy Transformation Agreements (RETAs) already signed between the Commonwealth and state governments. Victoria has received a minimum target allocation of 1.6 GW. However, the Victorian Government has requested a strict cap of 0.47 GW for solar-only projects within the state. Tasmania has been allocated a minimum generation target of 0.3 GW. The remaining 3.1 GW capacity will be awarded based on project competitiveness and overall merit. New South Wales has been excluded from Tender 9 because its generation requirements have already been met through previous CIS allocations.

One of the major highlights of the tender is the introduction of a dedicated First Nations Set Aside category. Through this initiative, 500 MW of the total capacity has been reserved for projects that offer at least 5 percent First Nations equity participation or equivalent revenue-sharing arrangements. The move is intended to ensure Indigenous communities receive long-term social and economic benefits from Australia’s renewable energy transition.

Projects selected under the scheme will receive a long-term Capacity Investment Scheme Agreement (CISA) for up to 15 years. The agreement provides financial support through a revenue safety mechanism. If project revenues fall below a fixed annual floor level, the government will compensate 90 percent of the shortfall. On the other hand, if project earnings exceed the annual ceiling, developers must return 50 percent of the excess revenue to the government.

To qualify for Tender 9, projects must have a minimum registered capacity of 30 MW, use approved renewable fuel sources, and possess a valid network connection agreement or enquiry response. Virtual power plants and wood waste projects are not eligible. Projects will be assessed on factors including value for money, reliability contribution, project delivery capability, organizational strength, First Nations participation, and community benefit sharing. Projects capable of reaching commercial operation before December 31, 2030, are expected to receive stronger evaluation scores. Successful bidders are expected to be announced by the Minister for Climate Change and Energy in November 2026.