Australia Launches 16 GWh Dispatchable Energy Storage Tender

Australia has launched Tender 8 of the Capacity Investment Scheme (CIS) for the National Electricity Market (NEM), seeking to add 16 gigawatt-hours (GWh) of clean, dispatchable energy storage. It comprise of (4 GW of 4-hour equivalent) dispatchable capacity in the National Electricity Market (NEM). The tender will support battery projects capable of powering the peak load of 3.7 million homes for four hours. Registrations close on January 23, 2026, and bids will be accepted until February 6, 2026.

In a shift that reflects the growing participation of smaller businesses in Australia’s renewable energy market, the CIS is now accepting aggregated projects. These aggregated bids consist of multiple stand-alone dispatchable projects that collectively deliver between 5 and 30 megawatts (MW) to the NEM. Tender 8 builds on the momentum of previous CIS rounds, with 18.8 GW already announced and another 7.2 GW currently out in active tenders.

This round is also expected to contribute to the delivery of an additional 40 GW of capacity by 2030, supporting the Australian Government’s target of reaching 82% renewable electricity by the end of the decade.

In addition, the tender aims to support generation growth and grid reliability as electricity demand rises and ageing coal plants retire—while helping place downward pressure on power prices.

Announced CIS projects to date have commitments to deliver over $37 billion in:

• local employment

• local expenditure

• community benefits

• First Nations benefits

Previous Tenders

Australia delivered its first Capacity Investment Scheme (CIS) pilot in partnership with the NSW Government, which concluded in November 2023. The joint tender selected six new battery and virtual power plant projects that will deliver more than 1 GW of capacity in the National Electricity Market (NEM) and create 400 jobs.

Later, Australia awarded the bids to the following bidders:

• Out of the 2.4 GWh (0.6 GW of 4-hour equivalent) tender, Australia awarded six bids totalling 1 GW/3.6 GWh.

• Under Tender 1 – NEM generation, the tender awarded 6 GW capacity to 19 bids for 6.4 GW capacity.

• Under Tender 2 – WEM dispatchable, the 2 GWh (0.5 GW of 4-hour equivalent) tender was awarded to four bids for 654 MW/2.6 GWh.

• Under Tender 3 – NEM dispatchable, the 16 GWh (4 GW of 4-hour equivalent) tender awarded the winning bids to 16 bidders for 4.13 GW/15.37 GWh capacity.

• Under Tender 4, the 6 GW tender was awarded to 20 bids comprising 6.6 GW capacity.