Joint media release: Registration opens for dispatchable renewable energy projects in SA and Vic
The Hon Chris Bowen MP, Minister for Climate Change and Energy
The Hon Lily d’Ambrosio, Victorian Minister for Climate Action
The Hon Tom Koutsantonis MP, South Australian Minister for Energy and Mining
The Albanese Government is making sure South Australia and Victoria have enough clean, affordable and reliable energy by opening registrations for the South Australia and Victorian Capacity Investment Scheme (CIS).
This program will help store renewable energy, like solar and wind power, so we can use it even when the sun isn't shining, or the wind isn't blowing.
This investment will deliver 600 megawatts of backup clean energy that can be used when we need it, helping keep the electricity grid stable and make sure Victoria and South Australia always have enough cheap dispatchable power at peak periods, increasing energy reliability and affordability.
It is part of a national effort to make sure Australia has enough reliable energy for homes and businesses as the energy market transforms. The first CIS is underway in NSW, and following South Australia and Victoria will expand to other parts of Australia.
From today, projects can register with AEMO Services to be part of this program and provide basic details of their project.
Projects can then submit a bid with AEMO Services once tenders are open, and AEMO Services will ensure they are technically and financially sound.
Then, the best projects will be invited to submit a full application, which will involve providing a revenue floor for projects to support projects through times of low revenue and will see taxpayers receive a share of revenues when revenues are higher than expected.
If a project is successful, they will get an agreement that lasts up to 15 years, called a Capacity Investment Scheme Agreement (CISA). This agreement will provide the investment certainty needed to ensure their dispatchable renewable energy project can happen.
It will also help reduce electricity prices in South Australia and Victoria as we undergo the transformation to renewable energy by reducing volatility in peak periods.
Over the last decade, 4GW of dispatchable power left the grid – mostly aging coal plants, and only 1GW was put in to replace it – the Capacity Investment Scheme rolling out across the country will fill help keep the lights on and deliver energy security for households and businesses.
The CIS program is open for big projects that can store energy for at least 2 hours and are at least 30 megawatts in size and will be open to different types of energy storage like batteries and hydrogen.
This program is part of the Albanese Government's plan to invest in reliable dispatchable renewable energy and storage to keep our lights on and our energy bills down.
To register for the SA–Vic CIS tender, go to https://cis.smartygrants.com.au/
Quotes attributable to Minister for Climate Change and Energy Chris Bowen:
“Today’s CIS announcement is about increasing investment in stored renewables that can be quickly dispatched to improve the security and reliability of the South Australian and Victorian grid.
“The sun doesn't always shine, and the wind doesn't always blow, but we can store the energy from the sun and the energy from the wind for use when we need it. That’s what this CIS tender is about.
“Over the last decade of energy policy chaos under the former government, Australia has seen 4 GW of dispatchable energy leave the grid and only 1 GW come on, and we won’t allow this to continue. This tender will ensure we can increase supply, reduce the risk of shortfalls and keep downward pressure on power prices in South Australia and Victoria.”
Quotes attributable to Victorian Minister for Climate Action Lily d’Ambrosio:
“Victoria is already the home of big batteries, and this auction will give projects extra support to get projects online quicker, helping us achieve our ambitious energy storage targets of at least 2.6 gigawatts by 2030 and 6.3 gigawatts by 2035.
“Energy storage is critical to reaching Victoria’s renewable energy target of 95 per cent by 2035 and delivering cheaper, more reliable energy to homes and businesses across our state.”
Quotes attributable to South Australian Minister for Energy and Mining Tom Koutsantonis:
“South Australia welcomes the Commonwealth’s support to increase dispatchable supply, particularly recognition of hydrogen alongside batteries, thermal storage and pumped hydro.
“This additional capacity will help fill in the gaps and firm supply as we power ahead to net 100 per cent renewables.”