The Australian federal government has announced the results of the fourth tender under the Capacity Investment Scheme, a national mechanism designed to support investment in low-emission energy infrastructure. This round resulted in the allocation of 20 projects with a combined capacity of 6.6GW, surpassing the original 6GW target.
Hybrid projects dominate allocations
Among the 20 selected projects, 12 combine renewable generation – solar or wind – with battery storage systems, together contributing more than 3,500MW of capacity. These configurations aim to secure supply and smooth the variability inherent in intermittent energy sources. The remaining projects focus solely on electricity generation without integrated storage solutions.
Several bids included commitments to local content, with projects planning to use Australian steel, including one that will rely entirely on domestic materials. Three initiatives include revenue-sharing mechanisms with Indigenous First Nations communities. Other projects have outlined subcontracting, training, and workforce development plans targeting these groups.
Multi-state deployment and community measures
The projects are distributed across several states. In New South Wales, awarded sites include Bendemeer Energy Hub, Dinawan Wind Farm Stage 1, Liverpool Range Wind Stage 1, Merino Solar Farm, Middlebrook Solar Farm, and Tallawang Solar Hybrid. In Victoria, contracts were awarded to Corop Solar Farm and BESS, Derby Solar Project, Hexham Wind Farm, and Nowingi Solar Power Station.
In South Australia, selected projects include Bundey BESS and Solar, Carmody’s Hill Wind Farm, and Willogoleche 2 Wind Farm. Other sites are planned in Tasmania and Queensland. Ten projects include community energy rebate mechanisms. One project plans to install rooftop solar panels on residential and school buildings, while another will establish an electric vehicle charging station.
Additional tenders scheduled before year-end
The announcement comes as two more tenders have opened in Western Australia: Tender 5 (WEM Generation) and Tender 6 (WEM Dispatchable), with submissions closing on 7 November. Two further national tenders are expected in the coming months: Tender 7 (NEM Generation) later this month and Tender 8 (NEM Dispatchable Capacity) in November. Additional rounds are planned for 2026.
As part of its climate strategy, the Australian government has set a national emissions reduction target of 62 to 70% below 2005 levels by 2035.
