Australia’s biggest battery storage tender awards more than 15 GWh of projects

Australia has concluded its largest dispatchable capacity procurement under its Capacity Investment Scheme (CIS) to date.

CIS Tender 3 aimed to deliver 4 GW of four-hour equivalent dispatchable capacity, or 16 GWh of projects, in the National Electricity Market (NEM). However, it attracted overwhelming interest, receiving 124 bids totaling approximately 34 GW / 135 GWh – more than eight times the intended capacity.

The 16 successful projects, all lithium-ion batteries, will deliver 4.13 GW/15.37 GWh by the end of 2029. This is enough storage to support the peak load of more than 3.5 million households in the NEM, the federal government said in an announcement on Tuesday.

Combined, these projects are estimated to provide around 1,900 construction jobs and 100-plus operations and maintenance jobs during the 20-year life of the assets benefiting Australian manufacturers, TAFE students, steel makers and First Nations communities.

The 16 projects are estimated to comprise $3.8 billion in local content, $218.8 million in First Nations benefits, $36 million in shared community benefits and $33.6 million of local steel, the government says.

Two projects have committed to First Nations equity sharing agreements, with several others committed to subcontracting with First Nations owned businesses and providing access to training and work force development and participation opportunities.

CIS Tender 3 is part of a broader initiative to deliver 40 GW of new clean energy capacity (wind, solar, storage) under the Capacity Investment Scheme. The scheme supports Australia’s target of 82% renewable electricity by 2030.

To date, 19 projects have been awarded under previous rounds of the CIS, totalling 5.85 GW of capacity. These projects are expected to deliver a combined $10.5 billion in benefits for First Nations communities and local industries.

“This is the latest step in the Albanese Government’s plan to rebuild Australia’s energy grid into the modern, reliable and fairer system we need,” said Minister for Climate Change and Energy Chris Bowen. “In three short years our reliable renewables plan has unlocked record levels of investment in Australia’s energy grid, while delivering good jobs, training, and community benefits to locals hosting this critical new infrastructure, that’s increasingly Australian-made.”

Notable winners

The biggest one among the awarded projects in CIS tender 3 was the 400 MW/1600 MWh Teebar battery in Queensland proposed by Atmos Renewables.

Melbourne-headquartered renewables developer Equis won three projects – 200 MW/800 MWh Koolunga in South Australia, 200 MW/800 MWh Lower Wonga in Queensland, and 150 MW/ 300 MWh Calala in New Sout Wales.

Akaysha Energy is among other notable winners. The developer secured CIS support for the 275 MW/1100 MWh Deer Park BESS in Victoria, previously under development by Lumea, and its 195 MW/780 MWh Ulinda Park BESS Expansion in Queensland, bringing the expanded BESS project to 350 MW/1078 MWh.

Other winning bids came from AMPYR Australia, TotalEnergies, Potentia, ACEnergy, Lightsource bp, and Valent Energy.

Overall, NSW had five winning battery projects, Victoria also five, Queensland four, and South Australia two. Western Australia is holding a separate tender due to its independent energy market. All CIS Tender 3 awarded projects offer four hours of energy storage, except for Calala.