Renewable push hits new peak
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The Albanese government has outlined the successful projects in Australia’s largest renewable energy tender.
The government has announced a tranche of 19 new projects, totalling 6.4 gigawatts of generation capacity.
New South Wales emerged as the primary beneficiary, with the majority of the developments secured as it works to replace its ageing coal-fired power stations.
This tender, part of the federal government’s Capacity Investment Scheme, aims to strengthen energy reliability and reduce costs for Australian households and businesses.
The selected projects include a mix of solar, wind, and hybrid facilities, with several featuring battery energy storage systems (BESS).
Eight projects explicitly integrate storage, while others are expected to follow suit.
The winners include a combination of established international firms and local developers.
Among the standouts, billionaire Andrew Forrest's Squadron Energy, France’s Neoen, and the UK’s Lightsource bp were successful bidders, highlighting strong global interest in Australia's renewable energy sector.
Lightsource bp alone secured significant capacity, with projects such as the 700 MW Sandy Creek Solar Farm and the 450 MW Goulburn River Solar Farm in NSW.
Critics argue that while the high number of solar projects is promising, the lack of emphasis on wind energy - despite its larger share of total capacity - reflects a missed opportunity to optimise resource diversity.
Furthermore, industry observers have raised concerns about the timelines, as many projects will not be operational until 2028, potentially leaving gaps in supply as coal plants retire.
Minister for Energy Chris Bowen says that the scheme would shield Australians from volatile fossil fuel prices while delivering lower energy costs.
He also spruiked the government’s commitment to local economic benefits, including $14 billion in spending on Australian businesses and $280 million directed to First Nations communities.
Social licence agreements are a prominent feature of this round too.
Commitments include $660 million in shared community benefits and $200 million in NSW projects to source locally milled steel.
However, analysts caution that ensuring compliance with these pledges could prove challenging.
The tender attracted 84 bids, far exceeding the scheme’s requirements and underlining strong investor confidence in Australia’s renewable potential.
Despite this enthusiasm, the sector faces logistical hurdles, from workforce shortages to supply chain issues, which may delay project delivery.
The government plans further auctions to bolster renewable capacity, with rounds three and four targeting more than 9.6 GW - 1.5 times the energy awarded in the first round.
