Western Australia has become the latest focal point in Australia’s nationwide push to accelerate its clean energy transition, with the federal government opening two new Capacity Investment Scheme (CIS) tenders. The tenders, collectively seeking 1.6 GW of renewable generation and 2.4 GWh of dispatchable capacity, mark a significant step in building out large-scale battery energy storage systems (BESS) and reinforcing grid reliability across the South-West Interconnected System (SWIS).
Unlike previous rounds, which followed a two-stage process, the current tenders (CIS 5 for renewable generation and CIS 6 for dispatchable capacity) will be assessed through a single-phase process, shortening the timeline from nine to six months. Projects must reach commercial operation before the end of 2030, and successful bidders will be required to disclose labour practices—such as the balance between fly-in fly-out (FIFO) workers and locally employed staff—underscoring the government’s increasing focus on transparency and regional workforce development.
What This Means for Energy Storage Development
For the energy storage industry, this tender represents a significant procurement opportunity, particularly for commercial and industrial (C&I) energy storage providers and large-scale BESS developers targeting the Australian market. With 2.4 GWh of dispatchable capacity up for grabs, the scheme is well aligned with the country’s broader target of adding 40 GW of new clean energy capacity by 2030, including 5 GW of dispatchable storage announced earlier this year.
The inclusion of First Nations merit criteria for the first time reflects a broader policy shift in Australian infrastructure projects, ensuring that Indigenous communities have a stake in the energy transition. Furthermore, the creation of a reserve list for high-quality, but initially unsuccessful, applicants suggests the government intends to maintain a pipeline of ready-to-deploy projects for future tenders.
Context: Australia’s Grid Needs Are Growing
Australia’s energy landscape is undergoing rapid transformation as aging coal-fired power stations continue to retire earlier than anticipated, placing greater pressure on both the National Electricity Market (NEM) in the east and the WEM in the west. Dispatchable energy storage—especially four-hour and multi-hour systems—is emerging as a cornerstone of grid stability, providing load shifting, frequency response, and peak shaving capabilities that are critical in a renewables-heavy network.
CIS Tender 3, still underway in the NEM, aims to secure 16 GWh of dispatchable projects—four times the capacity of the current WA round—while Tender 4 is targeting 6 GW of new renewable generation capacity. The momentum indicates a coordinated national approach, where each region moves in parallel to avoid bottlenecks and market imbalances.
Opportunities for European Stakeholders
For European companies operating in the commercial and industrial energy storage (C&I ESS) segment or supplying advanced battery technologies, Western Australia presents a growing market. Its unique geographical and industrial profile—marked by resource-heavy industries, remote operations, and rising renewable penetration—requires robust, flexible, and scalable storage solutions.
As tender outcomes are scheduled to be announced in September 2025, developers and technology providers should closely monitor these rounds, not only for immediate entry opportunities but also to anticipate regulatory and market frameworks likely to shape Australia’s storage landscape over the coming decade.
BATTLINK Battery Energy Storage Systems Expert