The Australian federal authorities’s 32 GW Capacity Investment Scheme (CIS) is bearing fruit, with a aggressive tender searching for 600 MW of vitality storage capability in Victoria and South Australia attracting 19,000 MW of mission proposals.
From pv journal Australia
Australia’s Energy Minister Chris Bowen mentioned the market response to the nation’s first large-scale public sale of dispatchable capability within the new CIS was “oversubscribed” with 19,000 MW of tasks submitted.
The Victoria and South Australia tender is searching for bids for vitality technology and storage tasks with as much as 600 MW / 2,400 MWh of dispatchable capability out there earlier than the tip of 2027.
The tasks, with a minimal capability of 30 MW and a minimal storage length of two hours, should retailer electrical energy bought from the National Electricity Market (NEM), or from a gasoline supply {that a} viable supply of vitality, together with photo voltaic, wind and hydro.
“The market response for this was big. Massively oversubscribed,” mentioned Bowen. “We need 600 MW of latest dispatchable capability. We acquired bids for 19,000 MW, 32 instances greater than what we requested for.”
Bowen mentioned profitable candidates to the Victorian-South Australian tender have been now listed by AEMO Services, which manages the nationwide CIS tender course of.
The complete tender allocation for every state is 800 MWh and a further 800 MWh is being ready, based mostly on the assessed benefit of the tasks.
“Under the ‘benefit standards’ that we now have designed, the auctions shall be received by tasks that construct reliability in our grid and strengthen native provide chains, selling an environment friendly vitality system,” mentioned Bowen.
The Victorian-South Australian tender marks the beginning of a three-year nationwide bidding schedule with aggressive tenders to be held roughly each six months till the tip of 2027.
The purpose is to ship 9 GW of dispatchable capability and 23 GW of variable capability all through the nation by the 12 months 2030. Successful tasks shall be awarded a “contract for distinction” that gives partial income assist from the Commonwealth the place the online income of a mission below the agreed ground. , and an obligation that promoters pay a proportion of web revenues to the Commonwealth the place web income exceeds an agreed ceiling inside a 12 months.
The subsequent tender to be held as a part of the CIS, searching for 6 GW of latest photo voltaic and wind tasks, shall be launched later this month.
Bowen mentioned the tender is the primary nationwide tender and can embody particular allocations for 3 states.
At least 2.2 GW of latest renewable vitality provide has been allotted to New South Wales and 300 MW shall be allotted to tasks offered in South Australia. An extra 500 MW shall be delivered to Western Australia.
“Constructive discussions will even proceed with different states and territories,” Bowen mentioned, noting that within the two years since 2022, renewable technology within the NEM has elevated to greater than 15,000 GWh, a rise by about 25%. “We negotiated these agreements with the states to make sure that we’re working collectively on two issues: improved supply of latest renewable tasks and making certain reliability all through the transition.”
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