Capacity Investment Scheme for Energy Storage agreed by Federal and State Energy ministers

State Energy Ministers met with Chris Bowen, Federal Minister for Climate and Energy, and agreed on a new scheme that would boost energy storage, both batteries and long duration storage.

The Labor Government has set a renewables target of 82 per cent by 2030. Along with more solar and wind  energy storage is needed to make dispatchable power for the grid.

“The Capacity Investment Scheme is essentially a ‘keep the lights on’ mechanism,” Bowen said.

“Australian households, industry and the energy market are all moving with their feet towards more affordable renewable energy. The Capacity Investment Scheme will ensure the reliable power we need is delivered as this transition continues.”

“The energy market has been changing for some time – but federal leadership had been too hamstrung by cynical politics on energy to acknowledge it or plan for it. Australian jurisdictions today took another step to turn that around for households and businesses.”

The Capacity Investment Scheme (CIS) provides a national framework  for new renewable dispatchable capacity, and will ensure reliability in Australia’s rapidly changing electricity market. It will  involve tenders for a revenue underwriting mechanism that help will unlock around $10 billion of investment in clean dispatchable power, essentially batteries and long duration storage.

According to Bowen, the CIS will complement rather than overlap with existing State schemes such as the NSW Electricity Infrastructure Roadmap, and therefore not alter competitive tenders currently underway.

The Scheme will work alongside the National Energy Transformation Partnership underway, and the Rewiring the Nation plan – these policies will work in unison to ease power prices and make energy cleaner and more secure.

References:

Chris Bowen, Ministerial press release, 8 December 2022, Capacity Investment Scheme to power Australian energy market transformation https://minister.dcceew.gov.au/bowen/media-releases/capacity-investment-scheme-power-australian-energy-market-transformation

Renew Economy, 8 December 2022, Energy ministers agree to fast-track big batteries and long duration storage https://reneweconomy.com.au/energy-ministers-agree-to-fast-track-big-batteries-and-long-duration-storage/