Sixteen Energy Storage Projects Advance Under $3.8 Billion Investment in Australia

Australia’s renewable energy transition has reached another major milestone as the country accelerates its energy storage investment through the latest phase of the Capacity Investment Scheme (CIS).

This round achieved stronger results than anticipated, awarding more battery storage projects and attracting record participation from clean energy developers.

The third tender under the CIS sought 4 GW of dispatchable capacity within the National Electricity Market but received bids totaling approximately 34 GW, equivalent to 135 GWh of potential storage — more than eight times the target.

In total, sixteen projects were selected, representing 4.13 GW (15.37 GWh) of large-scale lithium-ion battery systems expected to be operational by 2029. This combined capacity could support peak energy demand for over 3.5 million Australian households, strengthening the reliability of the national grid.

These awarded projects bring an estimated $3.8 billion in local content investment, alongside dedicated funding of $218.8 million for First Nations initiatives, $36 million for shared community programs, and $33.6 million for Australian-made steel.

Several projects incorporate First Nations equity-sharing agreements and partnerships with Indigenous-owned businesses, ensuring meaningful community participation. Workforce development is also a key component, supported by vocational training institutions and STEM programs that will cultivate new technical skills. Collectively, these initiatives are projected to create around 1,900 construction jobs and over 100 long-term positions in operations and maintenance throughout the assets’ 20-year lifecycle.

Government representatives have noted that this program highlights Australia’s growing success in integrating renewable energy investment with social and economic benefits for local communities, while advancing domestic manufacturing capabilities.

The new storage projects include multiple high-capacity grid-scale battery installations across New South Wales, Queensland, Victoria, and South Australia, each contributing to enhanced grid stability and renewable integration.

This tender builds upon 19 previously awarded CIS contracts, bringing the total secured capacity to 5.85 GW nationwide. Overall, the scheme now represents approximately $10.5 billion in cumulative investments tied to community, First Nations, and local industry outcomes—marking a significant step forward in Australia’s clean energy transformation.