The Albanese Government will deliver more reliable electricity to all Australians through the expansion of the existing Capacity Investment Scheme (CIS) and the National Energy Transformation Partnership (NETP), in conjunction with the states.
This investment will supercharge available power in the energy grid, delivering the long-term reliable, affordable and low-emissions energy system Australians deserve as our grid changes.
Under the last Government, 24 coal plants with a total capacity of 26.7 GW announced their closure dates, but the LNP failed to deliver any policy to ensure replacement capacity.
This dangerous and irresponsible approach- including their failure to deliver a capacity scheme – is one of the reasons Australia’s grid could face a difficult summer.
In contrast, the Albanese Government’s CIS underwrites new renewable generation and storage, providing certainty for renewable investors and cheaper, cleaner energy for households and businesses. It also recoups money for taxpayers when revenues are high.
This expansion will take the CIS from the current pilot stage to 9 GW of dispatchable capacity and 23 GW of variable capacity nationally – for a total of 32 GW nationally.
This is equivalent to around half the current National Electricity Market (NEM) with its nearly 11 million customers.
Today’s announcement follows the success of the first CIS pilot auction in New South Wales. The successful projects announced yesterday will deliver more than 1 GW of dispatchable power across the state.
The expected costs of CIS contracts are not-for-publication to ensure that reverse auctions achieve the best bang for buck for taxpayers.
To ensure the rollout is orderly and coordinated, the Commonwealth will also negotiate bilateral agreements with states and territories under the existing NETP.
States will be asked to work with the Commonwealth to ensure renewables are rolled out and reliability is enhanced through objective benchmarks, an orderly transition, and potential strategic reserves.
Around half of the capacity offered under the expanded CIS (18 of 32 GW) will be subject to these agreements. Capacity may be re-allocated from any jurisdictions that don’t make agreements to those that do.
The Commonwealth will also consider barriers to renewable investment such as workforce and supply chain constraints.
The same LNP that had 22 failed energy policies in Government now has none – just a risky all-in bet on small modular reactors that are unproven, too slow and too expensive.
In contrast the Albanese Government is delivering reliable, cleaner, more affordable electricity and a system Australia can count on – good for families, good for business and powering Australian manufacturing into the future.
