The Capacity Investment Scheme (CIS) will provide the national framework to drive new renewable dispatchable capacity. This will ensure reliability in the rapidly changing energy market into the future.
The Australian Government received endorsement yesterday from state and territory Energy Ministers to establish the scheme.
This new revenue underwriting mechanism will unlock $10 billion of investment in clean dispatchable power.
The CIS will help ensure Australia has an ongoing supply of cheap, renewable, domestically produced energy, regardless of global conditions.
CIS will complement rather than overlap with existing state/territory schemes such as the NSW Electricity Infrastructure Roadmap. The new scheme will therefore not alter competitive tenders currently underway.
CIS will also create construction and operations jobs in clean energy projects, especially in the regions.
The Australian Government will release further details on the scheme in the coming months, with a view to the first auction occurring in 2023.