1. CIS will oversee CfD tenders for renewable energy projects in Australia, aiming to achieve 82% renewable grid with 32GW capacity.
2. Consultation opened for WA to tailor CfD scheme to state’s needs, including focus on energy storage for grid stability.
3. RETAs will be signed to ensure delivery of new renewable energy projects, with WA expected to unlock 2.3GW of VRE and 1.1GW of firm dispatchable resources.
The Australian government plans to hold CfD tenders across the country to underwrite renewable energy projects totaling 32GW, including both variable renewable energy and firm dispatchable capacity achieved through energy storage. Pilot tenders have already been launched in South Australia and Victoria, with New South Wales receiving additional funding. A consultation has opened in Western Australia to tailor the CfD scheme to the state’s specific needs.
The NEM operates through a bidding process where the government tops up payments if revenue expectations are not met. The WEM in WA has a Reserve Capacity Mechanism to ensure sufficient reserve capacity on the grid. Both NEM and WEM forecast a need for energy storage in the future.
Construction has begun on a large battery energy storage system in WA, to be the country’s biggest by megawatt-hours. Minister Bowen announced that the government will work with states on Renewable Energy Transformation Agreements to ensure delivery of new renewable energy projects and facilitate the transition away from fossil fuels.
The agreements are part of the National Energy Transformation Partnership framework for cooperation between the Commonwealth government and state counterparts. The RETA in WA is expected to unlock additional VRE and dispatchable resources. The Capacity Investment Scheme targets to have approximately half of the capacity subject to RETAs.