The Australian government has launched two new tenders under the Capacity Investment Scheme (CIS) to support renewable energy and firming projects in Western Australia. The tenders are expected to attract about $4 billion in private investment for the wholesale electricity market covering the state’s south-west region, including Perth. The tenders will add 1.6 GW of renewable generation along with 2.4 GWh of dispatchable storage.
The tenders will contribute to Western Australia’s CIS allocation target of at least 2.3 GW of renewable generation and 4.4 GWh of dispatchable capacity. The bidders have ten weeks to submit bids under a streamlined process, with assessments based on deliverability, cost-effectiveness, grid reliability, engagement with First Nations communities, and binding commitments to deliver shared benefits. The deadline for bid submission is November 7, 2025.
Furthermore, the tenders are part of Australia’s broader plan to achieve 82 per cent renewables by 2030, with 40 GW of new renewable capacity supported by storage, transmission, and gas. The first CIS round resulted in the approval of 19 projects amounting to a capacity of more than 6 GW and the second CIS round resulted in approval of four dispatchable renewable energy projects with a total capacity of 654 MW.
REGlobal’s Views: Australia has been ramping its renewables capacity to support growing power demand as ageing coal power stations retire. Thus, in July 2025, the country has increased the planned CIS capacity from 23 GW to 26 GW for renewables generation and from 9 GW to 14 GW for clean dispatchable capacity. Auctions are planned to be conducted regularly from 2024-2027 to support this increased target and drive more investments in the country’s growing renewable energy sector.
