Good news for battery storage and pumped hydro projects: in December 2022 the Albanese Government announced a Capacity Investment Scheme (CIS) for dispatchable generation (excluding coal and gas) to deliver reliable electricity.
What we know
- Modelled off the NSW Long Term Energy Service Agreement auctions, it will be a revenue underwriting mechanism, providing a ‘floor’ price to help cover project operating costs and debt repayments.
- Open tenders will determine the projects to gain support, and are expected to begin later in 2023.
- CIS will complement rather than overlap with existing State schemes.
- It is expected to support at least 6 GW of generation.
The details will be critical, and Stride will share insights as they come to light.