Source: Energy Storage News
Pacific Green was one of the successful participants in the CIS, with the Limestone Coast Energy Park (pictured) having been awarded a CISA. Image: Pacific Green.
The Australian government has officially opened the Capacity Investment Scheme (CIS) Tender 8, targeting 16GWh of energy storage capacity across the National Electricity Market (NEM).
The tender represents the largest single energy storage procurement under the CIS programme, reflecting the government’s accelerated deployment timeline for grid-scale storage infrastructure.
Tender 8 registrations opened earlier today (28 November) and will close on 23 January, with submissions closing on 6 February. The tender specifically targets energy storage projects with a minimum 4-hour duration requirement, emphasising the government’s focus on medium-duration storage technologies capable of providing extended grid support services during peak demand periods and renewable energy intermittency events.
The 16GWh capacity target represents a substantial increase from previous tender rounds and aligns with Australia’s expanded CIS target of a total 40GW of renewables and energy storage.
The tender incorporates streamlined assessment processes developed through previous rounds, building on reforms introduced when the government unveiled four tenders for 2025.
These process improvements aim to reduce assessment timeframes and provide greater certainty for project developers while maintaining rigorous evaluation criteria for technical capability, financial viability, and grid integration requirements.
Eligible technologies under Tender 8 include battery energy storage systems, pumped hydro energy storage (PHES), compressed air energy storage, and other proven energy storage technologies capable of meeting the 4-hour minimum duration requirement.
The tender excludes hybrid renewable energy projects, focusing exclusively on standalone energy storage systems that can provide grid services, including frequency regulation, voltage support, and energy arbitrage across multiple market timeframes.
The CIS has demonstrated significant success in previous tender rounds, with substantial energy storage capacity awarded across multiple procurement cycles.
Tender 3 resulted in over 15GWh of energy storage being awarded to successful applicants, while Tender 4 saw 11.4GWh of solar-plus-storage projects receive government support through the programme.
The scheme provides revenue support through Capacity Investment Scheme Agreements (CISAs) that supplement market revenues, enabling project developers to secure financing for energy storage projects that might otherwise face commercial viability challenges in merchant market conditions.
The support mechanism includes floor and ceiling price arrangements that provide revenue certainty while maintaining market exposure and incentives for efficient operation.
Tender 8 evaluation criteria encompass technical specifications, commercial arrangements, grid connection requirements and project development timelines.
Projects must demonstrate grid connection agreements or advanced connection applications with relevant transmission network service providers, along with evidence of site control, environmental approvals, and financial capacity to complete construction and commissioning activities.
The geographic distribution requirements under Tender 8 aim to ensure the deployment of energy storage across multiple states and regions within the NEM, thereby supporting grid resilience and renewable energy integration under diverse network conditions.
The scheme includes milestone requirements and progress reporting obligations to ensure that successful projects advance through the development, construction, and commissioning phases according to agreed-upon schedules.
The DCCEEW will conduct information sessions for potential applicants during December 2025 and January 2026, providing guidance on application requirements, evaluation criteria and commercial arrangements.
Successful Tender 8 projects are expected to be announced in mid-2026, with CISAs enabling project financing and construction commencement. You can find out more about CIS Tender 8 on the official website.
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