The Australian Government is working with state and territory governments to significantly increase the capacity of Australia’s grid to deliver more reliable, affordable and low-emissions energy.
An additional 32 GW of renewable energy and clean dispatchable capacity – equivalent to around half the current ³Ô¹ÏÍøÕ¾ Electricity Market capacity – will be added to the grid by 2030.
This will be achieved through:
- expansion of the Capacity Investment Scheme (CIS)
- new agreements with state and territory governments under the ³Ô¹ÏÍøÕ¾ Energy Transformation Partnership (the Partnership)
Expanding the Capacity Investment Scheme
The CIS is a national framework to increase new investment in renewable and clean dispatchable energy projects.
This scheme’s expansion will underwrite projects to deliver 9 GW of clean dispatchable capacity and 23 GW of variable renewable capacity nationally by 2030.
This will build reliability and affordability into the changing energy market as coal-fired power stations reach the end of their life.
New agreements under the ³Ô¹ÏÍøÕ¾ Energy Transformation Partnership
The Australian Government will also negotiate new bilateral Renewable Energy Transformation Agreements (RETAs) with state and territory governments under the Partnership.
Through RETAs, states will work with the Australian Government to ensure delivery of new renewables projects, which may include commitments to:
- improve reliability by maintaining agreed reliability benchmarks
- manage an orderly transition
- invest in strategic electricity reserves.
RETAs will reflect the unique needs of each state and territory.
Around half the capacity offered under the CIS (18 of 32 GW) will be subject to these agreements.
Energy capacity may be re-allocated from any state or territory that does not make the necessary commitments to those that do.
