The states are set to receive a total of 1.7GW under the first tender for the Reliable Renewables Plan.
The Federal Government has announced a boost to renewables in Victoria and Tasmania, with a combined 1.7GW piece of the 6GW pie in Australia’s largest ever tender for renewable energy.
Tender 1 for renewable electricity generation project bids is expected to open on 31 May 2024.
The deals will be signed as part of the Federal Government’s Capacity Investment Scheme (CIS), designed to deliver 32GW of reliable renewables between now and 2030.
The Federal Government will negotiate bilateral Renewable Energy Transformation Agreements (RETAs) with state and territory governments as part of the Reliable Renewables plan, designed to unlock and fast-track new energy investments in individual states while ensuring a reliable grid.
Tasmania is expected to be guaranteed at least 300MW of new renewable energy as part of upcoming Reliable Renewables Plans while Victoria is expected to be guaranteed at least 1.4GW – enough to power at least 700,000 Victorian households.
Victoria has welcomed the Federal Government’s early commitment ahead of the final agreement on the full CIS program for Victoria.
The announcement comes after recent deals across the country to deliver energy where and when it’s needed for households and industry, with first allocations delivering at least:
- 2.2GW for New South Wales
- 300MW for South Australia
- 500MW for Western Australia
The Reliable Renewables Plans with states will be designed to ensure reliability and tackle barriers preventing energy coming online sooner, keeping the lights on for households and businesses as ageing coal-fired power stations shut down.
The Federal Government’s Reliable Renewable Plan, through the CIS, is designed to transform Australia’s energy system to a reliable 82 per cent renewable grid backed by storage, gas and transmission.
The Federal Government said that the amount of renewable generation in the National Energy Market (NEM) has increased by around 25 per cent since it came to office, and wholesale prices are turning around.
Registration of bids for the tenders open on 16 May 2024. This is the first of a series of planned six-monthly auctions.
A market brief for the total 6GW tender is available at www.dcceew.gov.au/energy/renewable/capacity-investment-scheme/cis-tenders
Federal Minister for Climate Change and Energy, Chris Bowen, said, “We’re focused on bringing energy prices down and boosting reliability by unlocking massive private investment in reliable renewables across Australia.
“We know the Federal Government’s plan to deliver the lowest cost, reliable energy to Australians is turning wholesale energy prices around – and we’re delivering direct energy relief straight onto bills,” Mr Bowen said,
Victorian Minister for Energy and Resources, Lily D’Ambrosio, said, “Victoria has done the heavy lifting to drive more cheap renewables into the grid, it’s great to have the Federal Government on board to help us build even more renewable energy projects and deliver cheap and reliable power to homes and businesses across Victoria.”
“We have an ambitious climate action agenda with a target of 95 per cent renewables by 2035 – to achieve this we must partner with industry to provide necessary confidence and leverage the huge amounts of private investment required.
Tasmanian Minister for Energy and Renewables, Nick Duigan, said “Tasmania has some of the best renewable energy resources in the world, and this support will help to harness these resources, delivering low-cost, reliable electricity to Tasmanian homes and businesses.
“We have a strong renewable energy past, with the CIS assisting to drive our renewable energy future to meet our growing demand and make a meaningful contribution to the national energy transition.
“I look forward to working with the Australian Government to finalise the agreement of the CIS in Tasmania.”
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