The Australian Government’s Capacity Investment Scheme (CIS) is set to open two significant tenders in late August 2025, aiming to secure 1.6 GW of renewable energy generation and 2.4 GWh of dispatchable capacity for Western Australia’s Wholesale Electricity Market (WEM). Known as Tender 5 and Tender 6, these competitive processes will target projects connecting to the South West Interconnected System (SWIS). Tender 5 focuses on renewable generation—such as solar and wind—with an indicative target of 1,600 MW, while Tender 6 seeks 2,400 MWh of dispatchable capacity, including battery storage with a minimum two-hour duration. Both tenders require projects to have a minimum capacity of 30 MW and demonstrate credible pathways to reach commercial operation by December 31, 2030. Projects with earlier operational dates and robust development plans will be rated more favorably. AusEnergy Services Limited (ASL), formerly AEMO Services, will manage the tender process, including assessing project merit and social licence, while the Minister for Climate Change and Energy holds final approval authority. The scheme aims to bolster energy reliability and accelerate Australia’s renewable transition (according to the reference article and CIS Market Briefs).
Both tenders will implement a streamlined single-stage bidding process—consolidating technical and financial proposals—intended to shorten the tender duration from nine months to approximately six. Registrations are expected to close by late September 2025, with the question and answer period concluding shortly before bids close in late October. This approach is designed to increase efficiency, deliver results earlier, and support timely signing of Capacity Investment Scheme Agreements (CISAs). Additionally, the government has integrated social licence requirements emphasizing meaningful engagement with First Nations and regional communities. From these tenders onward, recipients will publicly report labour and workforce practices, enhancing transparency around employment conditions. A webinar slated for early September will further clarify tender details and procedural changes. The CIS continues Australia’s ambitious goal to install 40 GW of renewable and dispatchable capacity nationwide by 2030, addressing energy gaps from coal and gas retirements.
These concurrent tenders mark a key step in expanding Western Australia’s renewable infrastructure. They complement prior CIS rounds, which awarded contracts for over 650 MW and nearly 2,600 MWh of dispatchable capacity across battery projects in the state. Final tender guidelines are expected shortly, with successful projects announced by March 2026. The federal government’s commitment underlines its strategy to achieve 82% renewable electricity by 2030 while ensuring reliable energy supply for households and businesses across Australia. Further updates and detailed allocation information will be available as the tenders progress.