Australian households and businesses are set to benefit from more stable and potentially cheaper electricity, following the Albanese Government’s announcement this week of 15 successful energy storage projects under the Capacity Investment Scheme (CIS) Tender 8. On June 23 and 24, 2026, Federal Energy Minister Chris Bowen confirmed that the projects will deliver a combined 4.2 GW of power and 16.1 GWh of storage capacity to the National Electricity Market (NEM) by 2029, exceeding the initial target of 4 GW/16 GWh.
This significant federal investment, expected to unlock approximately AUD$6 billion in private capital, aims to bolster grid reliability and drive down wholesale electricity prices by integrating more renewable energy.
“These batteries will soak up cheap renewable energy during the day and send it back into the grid when demand is highest, helping keep the lights on and bills down.” — Chris Bowen, Minister for Climate Change and Energy
The 15 projects, spanning Queensland, New South Wales, Victoria, and South Australia, are projected to support the peak electricity needs of over 3.7 million households for four hours. The initiative is also set to create more than 6,800 jobs across construction, operations, and maintenance, with additional benefits including AUD$62 million for local communities and AUD$52 million for the use of Australian-made steel.
Boosting Grid Stability and Lowering Costs
The federal government’s Capacity Investment Scheme is a cornerstone of its plan to achieve 82% renewable electricity by 2030. By underwriting revenue for new clean dispatchable capacity, the CIS de-risks investment in large-scale batteries, attracting the private capital necessary for Australia’s energy transition. The deployment of these substantial battery systems is critical for firming up intermittent renewable generation, ensuring a consistent and reliable power supply even when the sun isn’t shining or the wind isn’t blowing.
Energy Minister Chris Bowen emphasised the role of these batteries in shielding the grid from global energy volatility. By storing excess solar and wind energy generated during low-demand periods and releasing it during peak evening demand, these facilities will reduce reliance on more expensive gas-fired generation, directly contributing to lower energy bills for consumers.
State-by-State Impact of CIS Tender 8
Queensland emerged as the biggest beneficiary in this round, securing seven projects with a combined storage capacity exceeding 6 GWh. New South Wales and Victoria each received three projects, while South Australia secured two.
Key projects awarded under CIS Tender 8 include:
| Project Name | Developer(s) | State | Capacity (MW) | Storage (MWh) |
|---|---|---|---|---|
| Rutherglen Battery | Gryphon Energy, Red Hill Renewable, Ampyr Energy | Queensland | 400 | 1,602 |
| Grahams Battery | Ampyr Energy | Queensland | 350 | 1,428 |
| Bulabul 1 Battery Energy Storage System | Ampyr Energy | New South Wales | 300 | 600 |
| Wimpole Project | Ampyr Energy | Victoria | 375 | 1,522 |
| Gelston Energy Park | Ascera Energy | New South Wales | 400 | 1,600 |
| Ganymirra Energy Storage System | Edify Energy | Queensland | 250 | 1,000 |
| Majors Creek Energy Storage System | Edify Energy | Queensland | 250 | 1,000 |
| Oaky Creek BESS | Akaysha Energy | Queensland | 250 | 1,000 |
| Woonga Creek BESS | Lightsource bp | Queensland | 350 | 1,223 |
| Byellee BESS | Eku Energy | Queensland | 300 | 1,160 |
| Blanche BESS | Potentia Energy | South Australia | 125 | 508 |
| Emeroo BESS | Potentia Energy | South Australia | 225 | 900 |
These projects represent a diverse portfolio of battery energy storage systems (BESS), many designed with four-hour durations, crucial for addressing evening peak demand. The selection process saw 73 bids totalling 76.4 GW, nearly five times the targeted capacity, underscoring the strong interest and capability within the Australian energy sector to deliver on these ambitious targets.
Complementary Home Battery Support
While grid-scale batteries address national energy security and wholesale prices, individual households can also take advantage of incentives to reduce their own electricity bills. The federal government’s Cheaper Home Batteries Program continues to offer an upfront discount of approximately 30% on eligible small-scale battery systems (5 kWh to 100 kWh) when installed with new or existing solar PV. This program, expanded to an estimated AUD$7.2 billion over four years, aims to see over 2 million Australians install a battery by 2030, adding around 40 GWh of distributed storage capacity.
For homeowners considering personal energy storage, understanding the available rebates and costs is essential. A typical 10 kWh home battery system, for instance, can cost between AUD$7,900 and AUD$11,500 installed after the federal rebate in 2026, depending on the brand and installation complexity. This can lead to significant annual savings on electricity bills, making the investment increasingly attractive. For more information on financing options, refer to our guide on Best Solar Panel & Home Battery Financing Options in Australia 2026: Loans, PPAs & Green Mortgages Explained.
The Road Ahead: CIS Tender 10
Building on the strong response to Tender 8, the government has already opened CIS Tender 10, which targets a further 4 GW / 16 GWh of clean dispatchable capacity across the NEM. Bids for Tender 10 are open until August 18, 2026. This continuous rollout of new battery capacity signals a firm commitment to a renewable-powered future, further stabilising the grid and driving down energy costs for all Australians. As more large-scale batteries come online and integrate with the existing infrastructure, they will play an increasingly vital role in managing the variability of renewable energy sources and enhancing the overall resilience of the NEM. These developments complement the ongoing expansion of rooftop solar, allowing Australia to harness its abundant solar resources more effectively. For guidance on optimising your solar setup, see What Solar System Size Do You Really Need in Australia 2026? Future-Proofing for EVs & Electrification.
The federal government anticipates that the combined impact of these grid-scale and distributed battery initiatives will deliver a more secure, affordable, and sustainable energy future for Australia.