Australia has taken a decisive step in reshaping its electricity grid, awarding more than 15 GWh of battery energy storage projects in what marks the country’s largest procurement round to date. The outcome of the third Capacity Investment Scheme (CIS) tender highlights both the scale of ambition and the surging appetite among developers for long-duration storage.
A Tender That Overshot Expectations
The CIS Tender 3 set out to secure 4 GW of dispatchable capacity—equivalent to 16 GWh of four-hour storage—in the National Electricity Market (NEM). What followed was an extraordinary display of interest: 124 bids were submitted, representing around 34 GW / 135 GWh of proposals, more than eight times the targeted volume.
Ultimately, 16 lithium-ion projects were selected, representing 4.13 GW / 15.37 GWh of new storage to be delivered by 2029. According to government estimates, this capacity could support the evening peak load of more than 3.5 million households across the interconnected NEM states.
Beyond Storage: Local Industry and Social Benefits
The scheme goes well beyond megawatts and megawatt-hours. Successful bidders have pledged significant local content investments worth AUD 3.8 billion, alongside commitments to community and First Nations benefits. These include more than AUD 218 million in equity sharing and subcontracting agreements with Indigenous businesses, workforce development opportunities, and AUD 33.6 million worth of Australian steel procurement.
The government expects about 1,900 construction jobs and 100 long-term operations roles from the awarded projects. These figures matter in a country where the energy transition is not only about decarbonisation but also about sustaining local supply chains and creating regional employment.
Notable Winners: Scaling Commercial and Industrial Energy Storage
Among the winners, Atmos Renewables secured the headline project: the 400 MW / 1,600 MWh Teebar battery in Queensland. Other major developers include:
- Equis, with three projects across South Australia, Queensland, and New South Wales, totalling 550 MW / 1,900 MWh.
- Akaysha Energy, which won support for the 275 MW / 1,100 MWh Deer Park BESS in Victoria and an expansion of the Ulinda Park BESS in Queensland, bringing the latter to 350 MW / 1,078 MWh.
- Global players such as TotalEnergies, Lightsource bp, and AMPYR Australia also secured awards, underscoring the international confidence in Australia’s energy storage market.
Geographically, New South Wales and Victoria each host five projects, Queensland four, and South Australia two. Western Australia, which operates an independent grid, is running a separate procurement.
A Strategic Piece in the 2030 Puzzle
The CIS is part of a 40 GW clean energy pipeline designed to underpin Australia’s goal of sourcing 82% of electricity from renewables by 2030. So far, across three tenders, 19 projects totalling 5.85 GW have been awarded.
Battery energy storage systems (BESS) are increasingly recognised as the backbone of this shift. Unlike traditional peaking gas plants, C&I ESS and utility-scale batteries provide flexible, fast-response capacity to balance the growing penetration of solar and wind. The four-hour standard across nearly all winning projects ensures they can cover the critical evening peak when demand remains high but renewable output tapers.
Why Europe Should Pay Attention
Australia’s approach offers lessons for other regions grappling with similar challenges. By structuring tenders around dispatchable capacity rather than pure energy output, the CIS prioritises reliability alongside decarbonisation. Moreover, the program demonstrates how storage deployment can be leveraged to advance industrial policy, social equity, and community participation—issues increasingly central to Europe’s own energy debates.
For European developers and policymakers, Australia is becoming a live case study in how to mobilise large-scale investment in battery energy storage systems while maintaining public support and securing local value creation.
