Capacity Investment Scheme tender 1—31 May

The Capacity Investment Scheme Tender 1—Generation in the NEM is to open for bids on 31 May 2024, with registrations to open on 16 May.

The CIS tender is seeking 6 GW of renewable electricity generation across the National Electricity Market (NEM). Of this 6 GW, minimum capacity targets across the states apply:

  • New South Wales—2.2GW
  • South Australia—300MW
  • Victoria—1.4GW
  • Tasmania—300MW

The remaining 1.8 GW of renewable capacity will be allocated to projects across the NEM based on the assessment of the projects.

Market briefing

The Australian Government has released a market briefing note on the CIS Tender 1—Generation in the NEM. The briefing note provides an overview of the planned key design elements of the tender process. It includes the proposed eligibility criteria and proposed merit criteria that proponents will need to meet.

Further information and the final Tender 1 design elements will be published in the tender guidelines and draft Tender 1 Capacity Investment Scheme Agreement (CISA). These are expected to be released on 31 May.

AEMO and its role

The AEMO (Australian Energy Market Operator) Group has been selected to support the roll-out of the CIS as an advisor and tender delivery partner. They provide expertise in energy market design, management and procurement. AEMO Services is conducting the competitive tender process to determine to determine which projects the Commonwealth should support.

AEMO will conduct a two-stage tender process, assessing social licence criteria and financial value. It emphasises the focus on the stakeholder-centric experience of the tender participants. The aim is to secure reliability and security in energy supply for consumers across Australia. The Commonwealth Minister for Climate Change and Energy is the ultimate decision-maker. A short-list of projects will be recommended to the Commonwealth for final approval and ministerial sign-off.

AEMO will host a webinar in June to support potential proponents’ understanding of the Capacity Investment Scheme tender, process and product.

Need help with your Capacity Investment Scheme tender?

Madrigal has considerable experience and success with renewables and energy tenders and has significant experience in the energy sector and with CIS.