The Federal Government has opened two new Capacity Investment Scheme (CIS) tenders, which aim to give Western Australian households a cleaner, more reliable energy future.
The Federal Government’s said the CIS gives investors the certainty they need to build renewable generation and firming projects, delivering cheaper, cleaner, more reliable renewable energy for homes and businesses as coal exits the system.
These latest rounds will unlock an estimated $4 billion of additional private investment in the Wholesale Electricity Market (WEM) for the south-west region of Western Australian, including Perth.
These tenders will add 1.6GW of renewable generation backed up by 2.4GWh of clean dispatchable capacity to the WEM. This is enough energy to power more than 900,000 households annually and enough storage to cover the peak load of 550,000 households for four hours.
Successful tenders will secure Western Australia’s energy grid by contributing to the state’s CIS capacity allocation of at least 2.3GW of renewable generation and 4.4GWh of clean dispatchable capacity, complementing earlier tenders.
Proponents will have ten weeks to submit their bids under the new streamlined CIS process. They will be assessed not just on deliverability and value for money, but also on their contribution to grid reliability, the strength of their engagement with First Nations communities, and binding commitments to deliver shared benefits.
The Federal Government said the CIS is a cornerstone of its plan to deliver 82 per cent renewables by 2030 delivering 40GW of new renewable capacity across Australia to 2030, supported by gas, storage and transmission.
The latest tenders will build on the success of previous rounds that have executed 19 agreements to date, worth 5.85GW of capacity nationally. Announced CIS projects have commitments to deliver around $15 billion of local employment, expenditure, community and First Nations benefits.
Bidding closes on 7 November 2025, with tender guidelines on the ASL website at: CIS Tender 5 – WEM Generation and CIS Tender 6 – WEM Dispatchable.
Federal Minister for Climate Change and Energy, Chris Bowen, said these latest tenders will deliver certainty of progress to the Western Australian market and households with support for cleaner, more reliable renewable energy.
“We know the Capacity Investment Scheme is working, with investors and developers outbidding each other for the chance to deliver even more renewable energy for Western Australia this decade,” he said.
Federal Assistant Minister for Climate Change and Energy, Josh Wilson, said the 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.
“With more than two in five WA households generating power from their own rooftop systems, it’s clear that Western Australians have embraced renewable energy and welcome the work of the government and the energy sector to deliver the clean energy transition,” he said.
“The Federal Government is committed to promoting an orderly net zero economic transformation for Australia, its regions, industries, workers, and communities, while ensuring that Western Australia’s stand-alone grid provides the cleaner, cheaper, secure, and reliable energy that energy customers rightly expect.
“The CIS ensures that developers put forward strong and contractually binding social licence commitments that benefit First Nations and regional communities, make use of local content and Australian steel while providing local employment, apprenticeships and training opportunities for Australian workers.”
Western Australian Energy and Decarbonisation Minister, Amber-Jade Sanderson, said the state’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.
“This latest CIS tender provides investors with confidence to build projects here – backing the delivery of clean, renewable power for Western Australian households and businesses,” she said.
“CIS is already enhancing our energy transition, and adding a further 1.6GW of renewable generation will further strengthen our clean energy credentials and boost the capacity of our standalone our energy grid.”
