The Australian and NSW governments have launched the Capacity Investment Scheme (CIS) to enhance energy security and reliability across NSW by attracting investment in firmed renewables.
The Scheme is a national framework designed to create new dispatchable renewable capacity while ensuring reliability and affordability in Australia’s constantly changing energy market.
The partnership will deliver nearly 1 gigawatt of new dispatchable capacity, alleviating the predicted shortage in 2028/29 identified by the Australian Energy Market Operator (AEMO).
The Commonwealth’s CIS will more than double the 380MW of firmed capacity in the NSW Energy Roadmap’s firming tender to 930MW, with Commonwealth funding underwriting investment for up to 550MW of firmed capacity.
Bids of over 3.3GW have already been submitted to the NSW 380MW firming tender round, indicating that a considerable number of firmed renewable projects are still waiting to be unlocked by the announcement and help the grid in the long run.
The NSW CIS will support grid-scale dispatchable generating and storage technologies such as batteries, pumped hydro, and other dispatchable capacity.
Minister for Climate Change and Energy Chris Bowen stated that the scheme would raise critical investment in dispatchable renewable energy, improving the security and dependability of the NSW system and putting downward pressure on prices.
“Today’s announcement will drastically improve energy security with large-scale batteries and other zero-emission technology that can quickly dispatch cleaner, cheaper renewable energy when it’s needed, like when the sun isn’t shining and the wind isn’t blowing,” Minister Bowen added.
“The large number of proponents wanting to invest in New South Wales is a clear indication that we can transform our energy system and that any risks around grid reliability can be resolved by accelerating the development of a clean, reliable, consumer-focused energy system,” NSW Energy Minister Penny Sharpe said.
