The Capacity Investment Scheme (CIS) announced the successful funding allocation for six new renewable energy projects in Victoria and South Australia.
This initiative aims to enhance investment in dispatchable renewable energy sources such as battery storage and generation from solar and wind, addressing the increasing electricity demand and bridging reliability gaps as older coal power stations are phased out.
The selected projects will contribute a total of 3,626 megawatt hours (MWh) of energy, sufficient to meet the peak electricity demand for approximately one million homes, the government said in a media release.
The allocation will provide an additional 1,630 MWh to Victoria and 1,996 MWh to South Australia, with the projects scheduled to commence operations by mid-2027, contingent upon signing a Capacity Investment Scheme Agreement.
In Victoria, the projects include the Wooreen 350 megawatts (MW) lithium-ion battery system, operated by EnergyAustralia, located in the Latrobe Valley at the Jeeralang Power Station site in Hazelwood North.
Additionally, the Springvale Energy Hub, a 115 MW lithium-ion battery system to be developed by Project Power, will be situated on a former landfill site in south-eastern Melbourne.
South Australia will see the development of several significant projects, including the Limestone Coast West 250 MW lithium-ion battery operated by Pacific Green Energy, located near Mount Gambier.
The Solar River project, managed by Zen Energy, will feature a 170 MW lithium-ion battery in conjunction with a 230 MW solar farm, positioned north of Adelaide between Burra and Morgan.
Other notable projects include the Clements Gap 60 MW lithium-ion battery operated by Pacific Blue at the Clements Gap Wind Farm, and the Hallett 50 MW lithium-ion battery owned by EnergyAustralia, situated in Canownie, 210 km north of Adelaide.
The projects have committed to investing a total of $12.5 million in shared benefits for local communities and $6.5 million in initiatives supporting local First Nations groups.
This includes opportunities for local apprenticeships and training, in collaboration with TAFE Victoria.
To further support future participation, a SA-Vic Tender Outcome Market Brief will be released to help bidders enhance their proposals.
Additionally, two more CIS tenders are currently underway, with the next round expected to open later this year.
For more information on the Capacity Investment Scheme, visit the official website.
