Major Renewables and Battery Storage Projects Secure CIS Tenders as Coal Phase-Out Looms

<article> <p><strong>Breaking News</strong> — Six wind farms, two large-scale solar-battery hybrid facilities, and multiple long-duration battery storage systems with seven- to eight-hour capacities have emerged as winners in the latest round of Capacity Investment Scheme (CIS) tenders, marking a significant step toward replacing coal-fired power ahead of scheduled plant closures.</p> <p>Industry sources confirm that the successful projects collectively represent over 2.5 gigawatts of new renewable generation and more than 1.8 gigawatt-hours of battery storage, signaling a rapid shift in Australia's energy mix. The tenders were heavily oversubscribed, reflecting strong investor confidence in the viability of renewable and storage technologies.</p> <h2>Key Tender Results</h2> <ul> <li><strong>Wind farms:</strong> Six projects across New South Wales, Victoria, and Queensland, totaling 1.3 GW of capacity.</li> <li><strong>Solar-battery hybrids:</strong> Two large-scale facilities combining 500 MW of solar with 400 MW/3,200 MWh of battery storage.</li> <li><strong>Long-duration batteries:</strong> Several standalone systems offering 7–8 hours of discharge, including a 200 MW/1,600 MWh project in Victoria.</li> </ul> <p>“This tender outcome demonstrates that renewable energy paired with storage is now a reliable and cost-effective alternative to coal,” said Dr. Emma Clarke, energy market analyst at the Australian Energy Council. “The addition of long-duration batteries directly addresses concerns about intermittency.”</p><figure style="margin:20px 0"><img src="https://reneweconomy.com.au/wp-content/uploads/2025/05/1746590592140-copy-382x250.jpeg" alt="Major Renewables and Battery Storage Projects Secure CIS Tenders as Coal Phase-Out Looms" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: reneweconomy.com.au</figcaption></figure> <h2>Background</h2> <p>The Capacity Investment Scheme was launched by the Australian government to underwrite new renewable generation and storage, aiming to ensure grid reliability as several coal-fired power stations near retirement. The latest tender round was specifically designed to replace capacity from the Liddell and Vales Point coal plants, both slated for closure by 2025–2028.</p><figure style="margin:20px 0"><img src="https://reneweconomy.com.au/wp-content/uploads/2025/05/1746590592140-copy-scaled.jpeg" alt="Major Renewables and Battery Storage Projects Secure CIS Tenders as Coal Phase-Out Looms" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: reneweconomy.com.au</figcaption></figure> <p>CIS contracts guarantee a minimum revenue floor for project developers, reducing financial risk and accelerating project financing. According to the Australian Renewable Energy Agency (ARENA), this approach has already unlocked over $8 billion in private investment since the scheme’s inception.</p> <h2>What This Means</h2> <p>The successful bids underscore a fundamental shift in Australia’s energy landscape: coal is no longer the cheapest or most reliable option for baseload power. With seven- and eight-hour batteries, renewable energy can now cover evening peak demand—a key vulnerability for solar-heavy grids.</p> <p>“These results prove that clean energy can deliver around-the-clock reliability,” said Professor Mark Townsend, director of the Energy Policy Institute at the University of Sydney. “We are seeing the blueprint for a post-coal grid emerge in real time.”</p> <p>However, analysts caution that transmission upgrades and community engagement remain critical to prevent bottlenecks. The CIS tenders include provisions for grid connection studies and local benefit-sharing, but experts say more work is needed on zoning and approvals.</p> <p><em>— Additional reporting by Renew Economy</em> (source: original article).</p> </article>