Australia’s first CIS auction attracts 40 GW of new renewable energy proposals
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Australia’s inaugural National Capacity Investment Scheme (CIS) auction has attracted significant interest. Investors propose 40 GW of new renewable energy projects, including wind and solar power.
In an email shared with PV Magazine, Australian Federal Energy Minister Chris Bowen said, “The first auction of the Capacity Investment Scheme, which will support 6 GW of new power, has received more than 40 GW of project registrations.
Bowen added that the response showed huge investor confidence in the CIS framework, “There is a strong pipeline of renewables ready to go with the right policy settings.”
Read more: Australia renewables investment needs faster growth to meet targets, report says
The CIS involves the Australian Government seeking competitive tender bids for renewable capacity and clean dispatchable capacity projects to:
- deliver an additional 32 GW of capacity by 2030, made up of 23 GW of renewable capacity, representing $52 billion in investment, and 9 GW of clean dispatchable capacity, representing $15 billion in investment
- fill expected reliability gaps as ageing coal power stations exit
- deliver the Australian Government’s 82% renewable electricity by 2030 target.
The Australian Government will offer revenue underwriting for successful projects in the CIS tender, establishing an agreed revenue ‘floor’ and ‘ceiling.’ This creates a long-term revenue safety net, reducing financial risks for investors and promoting investment where and when it is needed.
Read more: Australia to invest $15 billion in renewable energy, domestic manufacturing
Revenue underwriting is a strategy employed both domestically and internationally to support investment in the energy transition.
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