The Australian federal government has selected nearly 1,886 megawatts of wind and solar generation capacity and 482 megawatts of battery storage across the fifth and sixth rounds of its Capacity Investment Scheme, all located in Western Australia. The combined awards, announced on 4 May 2026, represent approximately 5 billion Australian dollars in investment and are expected to power more than 1 million households across the state. The deal matters because it provides a significant boost to Western Australia's energy transition at a moment when the state is preparing to phase out coal fired power, while also demonstrating how structured capacity tenders can mobilise large scale renewable energy deployment in markets transitioning away from legacy fossil fuel generation.

 

The Scale and Composition of the Awards

 

The two tenders together selected six onshore wind farms, one solar plus storage installation and three battery energy storage systems, including one hybrid project. Tender five focused on renewable generation projects, while tender six was specifically structured for dispatchable capacity. The combined awards represent a meaningful step in Australia's renewable energy build out and reflect a structured approach that addresses both new generation supply and the dispatchable capacity needed to support a grid transitioning away from coal.

The geographic concentration in Western Australia is significant because the state operates a separate electricity system from the National Electricity Market that serves the eastern and southern parts of Australia. The Western Australian system has historically relied heavily on coal and gas generation, and the scale of the new awards represents one of the largest single waves of renewable energy investment ever directed at the state. The projects are spread across regional areas including the Wheatbelt, Mid West, Peel and South West, distributing the economic activity associated with construction and operation across multiple regional communities.

 

The Tender Five Generation Projects

 

Tender five awarded contracts to six wind projects and one solar plus storage installation. Neoen Australia secured two wind project awards, including the 420 megawatt Yathroo Wind Farm at Yathroo and the 168 megawatt Narrogin Wind Farm at Minigin. Shell Energy and Foresight received approval for the 130 megawatt Kondinin Wind Farm. SynergyRED was awarded the 240 megawatt Tathra Wind Farm at Eneabba. Tilt Renewables received approval for the 108 megawatt Waddi Wind Farm at Dandaragan. Zephyr Energy, the Atmos Renewables development arm, secured the largest single project at 470 megawatts for the Parron Maam Marang Farm at Hill River. Trina Solar was awarded a 350 megawatt solar plus battery storage hybrid project, the Killawarra Hybrid Project at Kadathinni.

The diversity of project types and developers across tender five reflects how mature the Western Australian renewable energy development pipeline has become. The participation of major international developers including Neoen, Shell Energy, Tilt Renewables and Trina Solar alongside Australian developers indicates that the state is competitive for international capital allocation in renewable energy. The mix of wind and solar plus storage technologies also addresses the operational reality that diversified generation portfolios deliver more reliable system outcomes than concentration in any single technology category.

 

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The Tender Six Dispatchable Capacity Awards

 

Tender six was specifically structured to deliver dispatchable capacity, awarding contracts to three battery storage projects. The Collie Battery and Solar Hybrid Project, developed by Enpowered and Plenary Group, will provide 200 megawatts of capacity with 1,518 megawatt hours of storage. Neoen Australia secured a separate 200 megawatt Yathroo Battery with 1,600 megawatt hours of storage capacity. Frontier Energy was awarded the first stage of the Waroona Renewable Energy Project at 82 megawatts and 565 megawatt hours.

The dispatchable capacity awards are particularly significant because they address one of the most important technical challenges facing electricity systems with high renewable energy penetration. As variable renewable generation expands, the value of storage capacity that can deliver power during periods of low generation or peak demand increases substantially. The combined 482 megawatts of battery storage awarded under tender six will provide dispatchable capacity sufficient to support more than 400,000 homes for four hours during peak demand, helping the state manage the transition away from coal fired power without compromising system reliability.

 

The Strategic Context for Western Australia

 

Western Australia is in the process of phasing out coal fired power generation, which has historically formed the backbone of its electricity system. The transition requires the addition of substantial renewable generation capacity to replace the lost coal output, alongside dispatchable capacity that can provide the firm power services that coal generators have traditionally supplied. The Capacity Investment Scheme awards provide a structured pathway for delivering both elements of this transition through coordinated tender processes that align project development with system requirements.

The economic impact of the awards extends beyond electricity supply. The projects are expected to create approximately 7,000 construction jobs and 500 ongoing maintenance roles across regional Western Australia. This regional employment dimension is commercially and politically significant because it links the energy transition directly to the economic vitality of the rural communities that host the projects. By delivering renewable energy investment alongside meaningful local employment, the awards strengthen the broader social licence for the transition.

 

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The Capacity Investment Scheme as a Policy Instrument

 

The Capacity Investment Scheme has emerged as one of the central instruments through which the Australian federal government is supporting the deployment of renewable energy and storage at scale. The scheme provides revenue certainty for selected projects through long term contracts, addressing one of the largest barriers to financing renewable energy infrastructure. By offering competitive tender processes with structured outcomes, the scheme allows the government to select the most cost effective projects while providing developers with the financial visibility needed to support investment decisions.

The latest awards bring the total number of projects backed under the Capacity Investment Scheme to 65, representing 13 gigawatts of renewable generation and 21.6 gigawatt hours of storage capacity nationwide. The cumulative scale of the programme demonstrates how a structured capacity scheme can deliver substantial new infrastructure within a relatively short timeframe. For other countries considering similar policy approaches, the Australian programme provides a useful reference for how to combine policy support with competitive market mechanisms to deliver renewable energy at scale.

 

What the Awards Signal for Australian Energy Transition

 

The wider significance of the latest Capacity Investment Scheme awards lies in what they indicate about the pace and structure of Australia's energy transition. The combination of substantial new renewable generation, dispatchable storage capacity, regional economic impact and policy supported revenue structures provides a model for how the transition can be delivered in a coordinated way. The 5 billion Australian dollar investment associated with the awards also reinforces the role of structured government policy in mobilising private capital toward energy transition infrastructure.

For Western Australia specifically, the awards represent one of the most significant single waves of renewable energy investment in the state's history and provide a substantial step toward the phase out of coal fired generation. For the broader Australian energy market, the awards demonstrate that the Capacity Investment Scheme is delivering at meaningful scale and is likely to continue serving as a primary driver of new renewable and storage capacity over the coming years. The performance of the selected projects through development, construction and operation will determine how effectively the policy instrument supports the broader transition objectives.