Government announces expansion of Capacity Investment Scheme to turbocharge renewables

30 November 2023

The Australian Government has announced an expansion of the Capacity Investment Scheme (CIS) to underwrite new renewable energy generation and storage, providing more certainty for renewable investors and cheaper, cleaner energy for households and businesses.

The move is also expected to help Australia reach its target of 82% renewables by 2030.

The expansion will take the CIS from the current pilot stage to 9GW of dispatchable capacity and 23GW of variable capacity (a total of 32GW nationally).

The CIS involves seeking competitive tender bids for renewable energy generation and clean dispatchable capacity projects that can fill expected reliability gaps.

The Australian Government will provide revenue support for the selected CIS projects, with an agreed revenue ‘floor’ and ‘ceiling’. This will provide a long-term revenue safety-net that decreases financial risks for investors and encourages more investment when and where it is needed.