Solar-Battery Hybrids Shine as Bowen’s Capacity Investment Scheme Expands Again
The Federal Government has announced the next wave of successful projects under its Capacity Investment Scheme (CIS), confirming 20 new large-scale renewable developments that will deliver 6.6 GW of generation capacity by 2030. The result marks another milestone in Australia’s shift toward clean energy and a significant step in Minister Chris Bowen’s plan to make 82 per cent renewables a reality by the end of the decade (1).
According to the Government’s official statement, the winning projects will create more than 12,000 construction jobs and over 1,000 long-term maintenance roles. The projects are expected to channel around $17 billion in investment into regional economies, supported by more than $600 million in community and First Nations benefits.
The fourth round of the CIS attracted 84 bids representing 25.6 GW of potential capacity, more than four times the 6 GW target, confirming the strong private-sector appetite for participation.
Solar-battery hybrids dominate
While the last CIS round saw wind dominate the capacity mix, this latest tender has shifted decisively toward solar-battery hybrids. As per Giles Parkinson’s analysis in Renew Economy, 11 of the 20 projects are solar-battery hybrids, supported by one wind-battery project, together providing 3.5 GW/11.4 GWh of storage (2).
This shift is largely driven by falling solar and battery costs, while wind projects continue to struggle with higher financing and construction costs. Notably, no wind project has reached financial close in Australia so far in 2025, highlighting the advantage that solar-battery hybrids now hold in achieving grid connection and financing milestones.
The winning projects span multiple states: six each in New South Wales and Queensland, four in Victoria, three in South Australia and one in Tasmania. Collectively, they will power more than three million homes.
Major winners
Several well-known developers and energy groups featured prominently. Tilt Renewables claimed the largest single project with its 634 MW Liverpool Range Wind Farm in NSW, while AGL, Australia’s largest coal generator, secured approval for its 600 MW Hexham Wind Farm in Victoria.
The standout performer, however, was Edify Energy, which won three projects totalling 900 MW of solar and 3,600 MWh of battery capacity. These include the Guthries Gap and Smoky Creek projects in Queensland and the Nowingi Solar Power Station in Victoria. The latter could expand its storage to 2,400 MWh, demonstrating the scalability of hybrid systems.
In a major industrial development, Edify’s Queensland projects have already secured power supply contracts with Rio Tinto to support the miner’s aluminium smelters and refineries, allowing an earlier exit from coal-fired generation at Gladstone [2].
EDP Renewables, a Portuguese clean energy giant, was another multiple winner with two large solar-battery hybrids: Merino (450 MW solar, 1,800 MWh battery) in NSW and Punchs Creek (400 MW solar, 1,600 MWh battery) in Queensland.
Other notable winners include Lightsource BP, TotalEnergies, Spark Renewables, and Windlab, representing both global energy majors and local developers.
Community and First Nations benefits
The Government emphasised that beyond energy security, the CIS continues to deliver social and regional benefits. The 20 projects collectively committed $291 million in community initiatives such as local libraries, parks and energy rebates, alongside $348 million in First Nations benefits.
This includes revenue-sharing agreements, subcontracting opportunities, training, and workforce development, ensuring that regional and Indigenous communities directly benefit from Australia’s energy transformation.
Three of the 20 projects include specific First Nations revenue-sharing models, while others have pledged training partnerships with local TAFEs and schools. Around $1 billion worth of Australian steel will also be used across the winning projects, underpinning local manufacturing.
The investor perspective
For investors, this announcement represents another clear signal that the CIS is now the central pillar of Australia’s energy transition framework. The scheme, which provides revenue underwriting (via Capacity Investment Scheme Agreements or CISAs), offers a safety net for developers by smoothing project cashflows and making financing more attractive to lenders and equity investors.
In practice, these contracts protect projects from low market prices while returning excess profits to the Government when power prices surge. This structure reduces downside risk and creates a more stable investment profile for large-scale renewables. This is a vital ingredient in securing long-term capital from superannuation funds, family offices, and institutional investors.
From an asset allocation perspective, the latest tender underscores a trend toward hybrid generation models that combine solar and battery storage. These projects improve grid reliability, offer multiple revenue streams, and provide a hedge against intraday price volatility. Investors looking at renewable infrastructure exposure should now expect to see more of these dual-capacity designs entering fund portfolios and exchange-listed vehicles.
Furthermore, the inclusion of community and First Nations benefit mechanisms demonstrates that social licence is increasingly a prerequisite for participation in major renewable tenders. For long-term investors, that social legitimacy translates into reduced project risk and improved sustainability credentials. Both are essential in attracting ESG-aligned capital.
What’s next
According to Bowen’s statement, the government has already announced that Tender 7, targeting another 5 GW of new generation capacity, will open for registration on 14 October, with a further dispatchable (battery) round set for late November.
The expansion of the scheme from its original 32 GW target to 40 GW confirms the scale of the Government’s ambition and the importance of accelerating approvals and construction timelines to meet the 2030 target.
While there are ongoing concerns about grid connection delays and the cost of capital, the success of this tender shows that both domestic and international investors remain confident in the direction of policy. The CIS is now not only an investment vehicle but also a blueprint for how the energy transition can deliver economic, environmental, and social returns simultaneously.
The Bottom Line
The fourth CIS tender cements solar-battery hybrids as the new benchmark for Australia’s renewable future. For investors, the implications are twofold: opportunities in hybrid generation and storage projects will continue to grow, and community benefit obligations will increasingly shape how capital is deployed.
With $17 billion in new investment and more than 12,000 jobs on the line, this announcement is another reminder that renewable infrastructure remains a core growth thematic. In our view, one that is supported by both market economics and government design.
References
Minister for Climate Change and Energy, Chris Bowen, “$600 million community boost as next wave of renewable projects power ahead,” 9 October 2025. https://minister.dcceew.gov.au/bowen/media-releases/600-million-community-boost-next-wave-renewable-projects-power-ahead
Parkinson G, Renew Economy “Solar battery hybrids carry the day as Chris Bowen names 20 winners of 6.5 GW CIS tender” 9 October 2025. https://reneweconomy.com.au/solar-battery-hybrids-carry-the-day-as-chris-bowen-names-20-winners-of-6-5-gigawatt-cis-tender/
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