CIS targets 1.6 GW of generation and 2.4 GWh of storage for WA

The focus of the federal government’s Capacity Investment Scheme has turned to Western Australia with two tenders to open later this month seeking 1.6 GW of renewable generation, such as solar and wind, as well as 2.4 GWh of dispatchable capacity, such as battery energy storage.

August 11, 2025 David Carroll

Image: Synergy

The federal government has announced that it will soon open two competitive tenders under its flagship Capacity Investment Scheme (CIS) targeting 1.6 GW of generation and 2.4 GWh of dispatchable capacity in Western Australia’s Wholesale Electricity Market (WEM). Both tenders are expected to open for bids late this month.

The two tenders will be known as WEM Generation Tender 5 and Tender 6 respectively and eligible projects will bid for an underwriting agreement that provides a price floor – to enable certainty and cheaper financing – and an agreement to share excess profits with the government.

AusEnergy Services Limited (ASL), which is overseeing the delivery of the recently expanded CIS initiative for the federal government, said the two tenders will be open to projects intending to connect to the South West Interconnected System (SWIS).

ASL, formerly AEMO Services, said projects must have a minimum capacity of 30 MW and dispatchable projects must have a minimum storage duration of two hours, and are expected to reach commercial operations before the end of 2030.

“Projects with earlier commercial operations date, and a credible pathway to achieve this milestone, will be considered to be of higher merit,” the agency said. “This will support the Australian government’s target of 82% renewable electricity by 2030.”

ASL said the Tender 5 and 6 processes will be conducted and assessed separately but will run concurrently.

In a market brief, it said both tenders will follow a single stage process that combines the project and financial bids, requiring proponents to submit all aspects of their bid at the same time.

Final tender design elements will be published in the tender guidelines which will be released shortly.

Both Tender 5 and 6 are scheduled to open for bids late this month with successful bids expected to be announced in March 2026.

The tenders are the latest in federal government’s CIS, which aims to deliver 40 GW of new solar, wind and dispatchable capacity across the nation out to 2030, to fill gaps created by the closure of coal and gas generators.

In Western Australia, the CIS is expected to deliver 2.3 GW of new solar and wind generation and 1.1 GW of four-hour equivalent (4.4 GWh) dispatchable capacity, or storage, by the end of the decade.

The first CIS tender conducted in the state awarded contracts for 654 MW / 2,595 MWh of dispatchable capacity spread across four battery projects.

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