Six new projects in Victoria and South Australia have been successful under the Capacity Investment Scheme (CIS).
The CIS encourages new investment in renewable energy dispatchable capacity – like battery storage and generation such as solar and wind. Which means we have the capacity to meet our growing electricity demand and fill reliability gaps as ageing coal power stations exit the grid.
The successful clean dispatchable capacity projects will be able to deliver 3,626 megawatt hours (MWh) of energy which is enough to supply the peak electricity demand for a million homes.
The tender allocation delivers an additional 1,630 MWh to Victoria and 1,996 MWh to South Australia. Conditional on signing a Capacity Investment Scheme Agreement the projects are due to start operation by mid-2027.
The Victorian projects are:
- Wooreen 350 megawatts (MW) lithium-ion battery system operated by EnergyAustralia in the Latrobe Valley on the existing site of the Jeeralang Power Station at Hazelwood North.
- Springvale Energy Hub 115 MW lithium-ion battery system to be developed by Project Power on the site of a former landfill in south-eastern Melbourne.
The South Australian projects are:
- Limestone Coast West 250 MW lithium-ion battery operated by Pacific Green Energy, near Mount Gambier.
- Solar River 170 MW lithium-ion battery alongside a 230 MW solar farm, operated by Zen Energy, located north of Adelaide between Burra and Morgan.
- Clements Gap 60 MW lithium-ion battery, operated by Pacific Blue, at the Clements Gap Wind Farm, in the state’s mid-north.
- Hallett 50 MW lithium-ion battery owned by Energy Australia, in Canownie, 210 km north of Adelaide.
The successful projects in this tender have committed a total investment of $12.5 million of shared benefits to local project communities and $6.5 million of initiatives for local First Nations groups. There will be opportunities for local apprenticeships and training, including for First Nations people, in partnership with TAFE Victoria.
A SA-Vic Tender Outcome Market Brief will be made available to assist bidders improve their bids and encourage participation in future tenders.
There are two more CIS tenders currently in progress with the next tender expected to open late this year.
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