Solar Battery Hybrids Dominate 6.5 GW CIS Tender Winners List
Solar battery hybrid projects have taken centre stage in the latest round of the federal government’s Capacity Investment Scheme (CIS), securing the majority of awarded projects and capacity. On Thursday, Federal Energy and Climate Minister Chris Bowen announced 20 projects with a total capacity of 6.5 gigawatts (GW) that have been granted revenue underwriting agreements in this latest tender focused on large-scale wind and solar energy.
The CIS has been expanded to accommodate 40 GW of generation and storage capacity, with the tender process accelerated to enhance the prospects of achieving the ambitious goal of 82 per cent renewable energy. The next generation tender, which aims to secure an additional 5 GW of capacity, is currently open for registrations, with bids due by October 14. A new tender for dispatchable generation is set to launch in November.
Key Winners and Trends
The standout project from this latest tender is the Liverpool Range wind project in New South Wales, while Edify Energy has emerged as the most successful developer, winning three projects. Both New South Wales and Queensland lead with six projects each, showcasing a significant shift towards solar battery hybrids, which have outperformed wind energy in terms of both capacity and project numbers.
In the previous generation tender, wind projects dominated in capacity, yet none have reached financial closure as of 2025. The ongoing financial challenges for wind projects are attributed to rising costs, whereas solar and battery storage technologies are experiencing price reductions. Notably, 12 of the 20 successful CIS projects incorporate batteries, a rise from eight out of 19 in the first generation tender.
A Surge in Battery Projects
Among the winners, there are 11 solar battery hybrids and one wind battery hybrid, collectively boasting a battery capacity of 3.5 GW / 11.4 GWh, nearly matching the capacity awarded in the recently announced dispatchable tender. The trend reflects a significant increase in battery projects, with revenue underwriting agreements for 28 battery initiatives across the last two tenders, amounting to 7.6 GW and 28 GWh of battery storage.
In this latest tender, seven projects were awarded for wind-only initiatives, while only one solar-only project secured a contract. Bowen expressed confidence in meeting the renewables target, despite some analysts suggesting it may not be achieved, noting that the latest tender was oversubscribed by a factor of four and is expected to generate $17 billion in new investments.
Investment and Community Benefits
Bowen highlighted the CIS’s popularity, stating, “The Capacity Investment Scheme continues to be popular and competitive, delivering cheaper, cleaner and more reliable energy for all Australians for years to come.” He emphasised the scheme’s role in modernising Australia’s energy grid and attracting global interest in wind and solar projects, while also creating thousands of jobs, particularly in remote and rural areas.
The largest project among the winners is the initial 664 megawatt (MW) phase of Tilt Renewables’ Liverpool Range wind project, which aims to expand in the future and is currently seeking planning approval for an onsite quarry to support construction. Other significant winners include AGL, which secured a contract for its 600 MW Hexham wind project in Victoria, although its Pottinger wind and battery project in New South Wales and Barn Hill wind project in South Australia did not make the cut.
Regional Highlights and Future Prospects
Both New South Wales and Queensland, where the state LNP government is set to unveil a new energy roadmap, each secured six winning projects, followed by Victoria with four and South Australia with three. Tasmania marked its first win with the 224 MW Bell Bay wind project owned by Equis. Projects in Western Australia are undergoing a separate auction process due to their unique market structure.
Edify Energy, recently acquired by Canada’s la Caisse, achieved success with three projects, including the Guthries Gap and Smoky Creek solar battery hybrids in Queensland, as well as the Nowingi solar battery hybrid in Victoria. These projects are underwritten for 300 MW of solar and 300 MW, 1,200 MWh of battery storage, with Nowingi potentially expanding its battery capacity to 2,400 MWh.
Interestingly, Guthries Gap and Smoky Creek have already secured a significant contract with Rio Tinto to supply energy to its aluminium smelters and refineries in Queensland, as the company plans to close the Gladstone coal-fired power station in favour of renewable energy sources.
Edify’s CEO, John Cole, expressed enthusiasm for the results, calling it a strong endorsement of their innovative solar power station design. The company also performed well in last month’s dispatchable tender, winning contracts for its Koolunga battery in South Australia and the Lower Wonga battery in Queensland.
Other notable winners include EDP, which secured two projects, and Spark Renewables with its Dinawan wind project in New South Wales. TotalEnergies also won for its Middlebrook solar battery hybrid project in New South Wales, alongside its Kiamal battery in Victoria from the previous month’s dispatchable tender.
The government estimates that the 20 awarded projects will contribute approximately $291 million in community benefits, including local infrastructure and energy rebates, as well as $348 million in benefits for First Nations communities through revenue sharing and workforce development initiatives. The projects are expected to create 12,000 construction jobs and over 1,000 long-term maintenance roles, with a commitment to purchasing $1 billion in Australian steel.
All projects are anticipated to be completed by December 2029, with winning bids receiving a CISA (CIS agreements) that acts as a revenue underwriting agreement, providing a financial safety net. While most projects will need to secure commercial contracts, the CISA is expected to facilitate this process, although there are concerns that many bids in the first generation tender were too low.
This latest tender marks the fourth round under the CIS, with plans for additional tenders in Western Australia and at least two tenders annually for the main grid under a new expedited process. The CIS’s capacity target has also been raised to 40 gigawatts from the original 32 GW.
