Australia Opens Bidding in 4-GW NEM Dispatchable Tender: A Major Boost for Energy Storage

Australia has taken another decisive step toward strengthening its clean energy future with the launch of Capacity Investment Scheme (CIS) Tender 8, the country’s largest-ever single procurement round for energy storage. The tender, officially opened by the government on Friday, seeks 4 GW / 16 GWh of dispatchable capacity to support the National Electricity Market (NEM) - equivalent to powering the peak electricity demand of 3.7 million homes for four hours.

This new tender marks a significant milestone in Australia’s efforts to accelerate renewable energy adoption, enhance grid reliability, and reach its national target of 82% renewable electricity by 2030.

Key dates for CIS tender 8

• Registration deadline: January 23, 2026

• Bid submission deadline: February 6, 2026

• Announcement of successful projects: June 2026

With a procurement scope of 16 GWh, Tender 8 surpasses previous rounds and positions itself as the most ambitious energy storage tender in CIS history.

What Tender 8 Aims to Deliver

Tender 8 targets dispatchable energy storage solutions, primarily large-scale batteries, to manage peak demand and stabilise the grid. This round will complement the earlier CIS Tender 3, which jointly awarded 4.13 GW / 15.37 GWh across 16 projects to be completed by 2029.

Together, these tenders form a critical backbone of Australia’s transition to a renewable-powered future.

New Flexibility: Permitted Aggregated Projects

A key innovation in Tender 8 is the introduction of aggregated bids.

Unlike previous tenders, developers can now group multiple standalone projects into a single bid, provided they meet the following criteria:

• Combined capacity of 5 MW to 30 MW

• Minimum 2-hour storage duration

• All projects must use the same technology

• All must be located within the same NEM region

This change opens the door for smaller players, regional developers, and community-level storage solutions, enabling broader participation in Australia’s energy transition.

Priority for Projects Commissioned Before 2030

Under updated evaluation rules, the government will prioritise:

• Projects scheduled for commissioning by December 2030

Proposals set to begin commercial operation after 2030 will be rated as low merit and will not advance in the assessment process. This ensures Tender 8’s outcomes directly contribute to achieving the national 82% renewables target.

A Single-Stage, Competitive Process

Tender 8 will be conducted as a single-stage competitive round, streamlining the bidding process and enabling faster evaluation and award. With rising energy demand, accelerating electrification, and ongoing coal plant retirements, this tender is expected to play a vital role in:

• Improving grid reliability

• Supporting renewable integration

• Reducing wholesale energy volatility

• Attracting new investment across Australia’s clean energy sector

Australia’s Push Toward a Stable, Renewable Future

With 18.8 GW of capacity already announced across previous CIS rounds and another 7.2 GW in active tenders, Australia is rapidly building the infrastructure needed to ensure a resilient and sustainable energy system.

CIS Tender 8 represents the next big leap - unlocking massive investments in large-scale batteries and paving the way for a modern, flexible, and renewable-powered grid.

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