Tender issued for 600 MW/2.4 GWh of energy storage project in Australia

The Australian Energy Market Operator (AEMO) issued a tender as part of the new national Capacity Investment Scheme (CIS) for 600 MW/2.4 GWh of energy storage in Victoria and South Australia.

The latest tender with Victoria and South Australia will target 600 MW of dispatchable capacity with 4-hour equivalent duration across the two states, in line with the Australian Energy Market Operator’s 2022 Integrated System Plan. It's part of an initiative to provide financial support to new, environmentally friendly storage projects in Australia, including large-scale batteries, hydrogen, and pumped hydro. This initiative is intended to stimulate and expedite projects, especially as coal power plants are retiring rapidly. Through CIS, the development of grid-scale, dispatchable renewable energy generation and storage will be promoted, ensuring greater reliability and affordability of electricity for homes and businesses across Australia. This endeavor is expected to attract approximately US$10 billion in investments and contribute 6 GW of capacity to enhance grid reliability and security.

A two-step approach will be used by AEMO to undertake the Victoria/South Australia tender, with the initial stage requiring bidders to provide project specifics and the second stage requiring those who have been shortlisted to present financial proposals. The registration period for the tender will commence in September, and more information will be made available in the next weeks.