Australia Launches 16 GWh Dispatchable Energy Storage Tender Under the Capacity Investment Scheme

Australia has taken another major step towards strengthening its clean-energy future with the launch of Tender 8 under the Capacity Investment Scheme (CIS), seeking 16 GWh of dispatchable energy storage - equivalent to 4 GW of four-hour batteries across the National Electricity Market (NEM).
As the nation accelerates its transition away from coal, the tender will support large-scale batteries that can power 3.7 million homes for four hours during peak demand, increasing reliability.

Bids will be accepted through February 6, 2026, with registration closing on January 23, 2026.

Australia's Energy Storage Pipeline Gets a Significant Boost

The latest tender marks a significant expansion of Australia’s national storage capacity. Battery developers - both large and small - can now compete, as CIS Tender 8 allows aggregated bids, enabling multiple smaller dispatchable projects to group together and supply between 5 MW and 30 MW to the grid.

The action is indicative of the growing influence of regional and small-scale developers in Australia's renewable energy market.

Important Tender Highlights

• Seeking dispatchable storage capacity of 16 GWh/4 GW

• Capable of powering 3.7 million homes during peak hours

• helps maintain grid stability as older coal-fired power plants retire

• Opens the door for aggregated small-scale project participation

• Builds on 18.8 GW already announced under the CIS

• helps achieve the government's 2030 target of 40 GW more capacity.

• helps achieve the goal of 82% renewable electricity by 2030.

Driving Investment, Lowering Prices, Strengthening the Grid

The CIS is central to Australia’s commitment to delivering firm renewable energy at scale.
Announced CIS projects to date include over $37 billion in commitments, covering:

• Local job creation

• Regional and community benefits

• Local supply chain development

• Participation and economic inclusion of First Nations

It is anticipated that Tender 8 will enhance these advantages even more, bolstering the domestic renewable energy sector and assisting in the stabilisation of electricity prices by boosting supply and competition.

Track Record of Earlier CIS Tenders

Australia’s previous CIS tender rounds have set strong precedents:

CIS Pilot (NSW) - November 2023

• Six VPP and battery projects were chosen.

• Over 1 GW capacity added

• produced 400 jobs

Tender 1: Generation of NEM

• 19 projects received 6 GW.

Tender 2 - WEM Dispatchable

• 654 MW / 2.6 GWh awarded (over a 0.5 GW target)

Tender 3 - NEM Dispatchable

• Awarded 4.13 GW / 15.37 GWh, exceeding expectations

Tender 4: Generation National

• 6.6 GW awarded across 20 projects

According to the findings, Australia's large-scale storage market is one of the fastest-growing in the world.

Conclusion: An Important Step in Australia's Transition to Clean Energy

Tender 8 signals Australia’s commitment to delivering a reliable, renewable-powered grid backed by large-scale batteries and innovative energy storage solutions.
As electricity demand rises and ageing fossil fuel stations retire, the CIS provides the mechanism to secure long-term, dispatchable energy and ensure affordable, sustainable power for millions of consumers.

Australia is rapidly becoming a global leader in firm renewable energy infrastructure, with registrations now open and bidding scheduled for early 2026.

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