Hundreds of thousands of Western Australian households are set to benefit from cleaner and more reliable energy, with the Albanese Government opening two new Capacity Investment Scheme (CIS) tenders aimed at boosting renewable generation and storage capacity.
The tenders, announced on Wednesday, are expected to unlock around $4 billion in private investment for the Wholesale Electricity Market (WEM) in the state’s south-west, including Perth. Together, they will deliver 1.6 gigawatts (GW) of renewable energy and 2.4 gigawatt-hours (GWh) of dispatchable storage, enough to power more than 900,000 households annually and support the peak demand of 550,000 homes for four hours.
The projects will contribute to Western Australia’s CIS target of 2.3 GW of renewable capacity and 4.4 GWh of storage, complementing earlier rounds of the program. To date, the CIS has secured 19 agreements nationwide, representing 5.85 GW of capacity and commitments worth $15 billion in local jobs, training, and community benefits.
Federal Climate Change and Energy Minister Chris Bowen said the tenders will provide greater certainty for the market.
“These latest tenders will deliver certainty of progress to the Western Australian market and households with support for cleaner, more reliable renewable energy,” he said. “We know the Capacity Investment Scheme is working, with investors and developers outbidding each other for the chance to deliver even more renewable energy this decade.”
Assistant Minister Josh Wilson highlighted the role of the tenders in managing the state’s transition away from coal.
“These new tenders for renewable energy generation and storage will make a significant contribution to meeting Western Australia’s energy needs as our state exits coal-fired power generation,” Wilson said.
Western Australian Energy and Decarbonisation Minister Amber-Jade Sanderson welcomed the move, saying it would boost investor confidence while accelerating the state’s clean energy transition.
“Western Australia’s clean energy transition is well underway, with a mix of public and private renewable energy generation and storage projects paving the way for us to exit State-owned coal generation by 2030,” she said.
Bidding for the tenders is open for 10 weeks and will close on 7 November 2025. Proposals will be assessed on deliverability, cost-effectiveness, contributions to grid reliability, engagement with First Nations communities, and commitments to local employment and industry participation.
The CIS is a key part of the federal government’s plan to deliver 82% renewables by 2030, with 40 GW of new renewable capacity to be added nationally, supported by gas, storage, and transmission infrastructure.
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