Bowen Announces 1.6 GW Renewable Energy Tenders for Western Australia Grid
The Federal Labor government has unveiled new tenders aimed at securing 1.6 gigawatts of renewable energy capacity and 2.4 gigawatt-hours of “dispatchable capacity” for the Western Australia grid, as part of the latest rounds of its Capacity Investment Scheme (CIS).
Announced on Friday morning, these tenders are designed to enhance WA’s isolated Wholesale Energy Market (WEM), which continues to depend heavily on coal and gas. Most of the recent renewable developments have occurred off-grid, primarily to support the state’s extensive resources sector.
Preparing for a Coal-Free Future
Western Australia is already home to the nation’s largest battery storage project, with additional projects in the pipeline as the state gears up for a coal-free grid by 2030. However, there has been a noticeable lack of new wind and solar initiatives, highlighting the need for further battery storage solutions.
The market brief released on Friday indicates that CIS Tender 5 aims for an indicative target of 1,600 MW of new renewable projects that will either connect or plan to connect to the South-West Interconnected System (SWIS), the state’s primary grid. Proposed projects must have a minimum size of 30 MW and demonstrate a viable pathway to commence commercial operations by the end of December 2030.
Details of the New Tenders
Tender 6 focuses on projects that require a minimum storage duration of two hours and a registered capacity of at least 30 MW, targeting a total of 2,400 megawatt-hours of dispatchable capacity linked to the SWIS.
According to Minister Bowen, these two CIS rounds are expected to unlock approximately $4 billion in additional private investment within the WEM, particularly benefiting the south-west region, including Perth. The anticipated projects are set to generate enough solar and wind energy to power over 900,000 homes annually, along with sufficient storage to meet the peak demand of 550,000 households for four hours.
Successful tenders will enhance the reliability of Western Australia’s energy grid, contributing to the state’s CIS capacity allocation of at least 2.3 GW of renewable generation and 4.4 GWh of clean dispatchable capacity, complementing previous tenders.
Bowen noted that proponents will have a 10-week window to submit their bids under the streamlined CIS process, with the deadline set for November 7. Bids will be evaluated based on deliverability, value for money, and their impact on grid reliability, as well as engagement with First Nations communities and commitments to shared benefits.
“These latest tenders will provide certainty for the Western Australian market and households, supporting cleaner and more reliable renewable energy,” Bowen stated on Friday morning. “The Capacity Investment Scheme is proving effective, with investors and developers competing to deliver even more renewable energy for Western Australia this decade.”
WA Energy Minister Amber-Jade Sanderson expressed confidence that the latest CIS tender will encourage investors to undertake more projects in the state. “The CIS is already facilitating our energy transition, and the addition of 1.6 gigawatts of renewable generation will further enhance our clean energy credentials and bolster the capacity of our standalone energy grid,” Sanderson remarked on Friday.
