The Australian government has taken a significant step towards its renewable energy targets, awarding contracts to 20 clean energy projects under Tender 4 of the Capacity Investment Scheme. These projects, with a combined capacity of 6.6GW, surpass the initial 6GW target, demonstrating strong momentum in the country’s transition to renewable energy.
The successful projects are geographically diverse, spanning multiple states. In New South Wales, the awarded projects include the Bendemeer Energy Hub, Dinawan Wind Farm Stage 1, and several solar farms. Victoria sees investments in the Corop Solar Farm and BESS, Derby Solar Project, and others. South Australia’s awards include the Bundey BESS and Solar project, and the Carmody’s Hill Wind Farm. Additional projects are located in Tasmania and Queensland.
A notable aspect of this tender is the emphasis on hybrid schemes, with 12 of the 20 projects combining battery storage with wind or solar generation. These hybrids contribute over 3,500MW of capacity, highlighting the growing importance of energy storage in Australia’s renewable energy mix.
The government’s commitment to local content and community engagement is evident in several successful bids. Multiple projects have pledged to use Australian steel, with one project committing to 100% local steel input. Three projects include revenue-sharing arrangements with Indigenous First Nations communities, and others have pledged subcontracting, training, and workforce development with these groups. Ten projects propose community energy rebate schemes, with one planning to install rooftop solar on homes and a school, and another to install a public electric vehicle charger.
This announcement comes on the heels of the opening of two Western Australian tenders – Tender 5 (WEM Generation) and Tender 6 (WEM Dispatchable) – with bids closing on 7 November 2025. Tender 7 (NEM Generation) is due to open later this month, and Tender 8 (NEM Dispatchable Capacity) is expected to open in November 2025. Further tenders are planned for 2026.
The government’s actions align with its goal to transition to net zero, with a national emissions reduction target of 62-70% below 2005 levels by 2035. As Energy Minister Chris Bowen stated, “These projects will not only help us meet our renewable energy targets but also support local jobs, communities, and industries.”
The success of this tender round could accelerate the development of renewable energy projects in Australia, particularly those with storage capabilities and strong community ties. It may also encourage more states to participate in future tenders, fostering a more competitive and diverse renewable energy market. The focus on local content and community benefits could set a precedent for future tenders, shaping the sector’s development in a more inclusive and sustainable direction.