Last updated: July 2026
Federal Government Awards $6 Billion in Battery Contracts
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The federal government on 24 June awarded revenue underwriting contracts to 15 grid-scale battery projects across New South Wales, Queensland, Victoria and South Australia, the largest single storage procurement round in the Capacity Investment Scheme's history.
The 15 projects cover 4,205 megawatts and 16,074 megawatt-hours of new dispatchable capacity. Combined, they will supply the evening-peak electricity needs of 3.7 million households and unlock around $6 billion in private investment. All 15 must reach commercial operations by 31 December 2029.
More than 70 bids totalling 76.4 gigawatts competed for the 15 contracts. The tender was open to pumped hydro and compressed air storage. Every winning project is a standalone lithium-ion battery.
Who won
Queensland received the largest allocation: seven projects totalling 2,150 MW and 8,413 MWh. Victoria took three projects at 875 MW and 3,533 MWh. New South Wales secured three at 830 MW and 2,270 MWh. South Australia received two projects at 350 MW and 1,408 MWh.
Ampyr Energy won four contracts. In Queensland, Ampyr secured the 350 MW Grahams Battery (developed with Gryphon Energy) and the 400 MW Rutherglen Battery, the largest individual project in the round. In New South Wales, Ampyr won the 300 MW Bulabul 1 Battery. In Victoria, it took the 375 MW Wimpole Battery.
Potentia Energy won three contracts in South Australia and New South Wales. Edify Energy and Akaysha Energy each won two. Lightsource bp, Ascera Energy, Equis Australia, HMC Capital and Eku Energy each won one.
What the construction pipeline looks like
Each of the 15 developers will now run procurement for civil earthworks, grid connection infrastructure, electrical installation, security, communications, logistics and operations and maintenance. Those processes run outside the AusTender system and directly through each developer. If you want to work on these projects, you track the developers, not the government tender portals.
Energy Minister Chris Bowen described the projects as designed to "capture low-cost renewable electricity when solar and wind generation is high and supply that energy back to the grid during periods of increased demand." Assistant Minister Josh Wilson said the result showed "strong investor confidence in Australia's energy transition."
Across the 15 projects, developers have committed more than $60 million to community benefit initiatives, more than $220 million to First Nations benefits and more than $50 million to Australian-made steel procurement. Those numbers translate to real procurement requirements. Suppliers who can show First Nations business partnerships or certifications, or who supply structural steelwork, cable trays and mounting systems from Australian manufacturing, have a specific advantage in supply chain selection.
The First Nations commitments reflect a broader CIS policy shift. From Tender 9 onwards, CIS tenders carry a formal First Nations equity and revenue sharing set-aside for projects that commit at least 5% equity or revenue sharing to First Nations communities. Developers who made voluntary commitments in Tender 8 have already positioned themselves for that requirement in future rounds.
The December 2029 deadline
Three and a half years to commercial operations sounds workable. For utility-scale battery projects, it is tight. Grid connection queues in Queensland and New South Wales are running long. Skilled trades are under pressure from concurrent construction programs, including the Suburban Rail Loop in Victoria and multiple hospital builds nationally. Battery cell and inverter procurement timelines have tightened as global demand rises.
Developers under a hard deadline front-load their subcontractor and equipment supplier selection. The window to get on their radar opens now, before shortlists close. Waiting for a request for tender to appear on AusTender means you have already missed most of these opportunities.
Tender 10 and what comes next
The government opened CIS Tender 10 on the same day as the Tender 8 results, seeking another 4 GW and 16 GWh of dispatchable storage across the NEM. Bids close 18 August 2026. The government expects Tender 10 to be the final dispatchable round under the CIS program.
CIS Tender 9, targeting 5 GW of renewable electricity generation, opened in May 2026 with outcomes due in November 2026.
AEMO's 2026 Integrated System Plan, published on 25 June, calls for 40 GW of energy storage nationally by 2050: 35 GW of short and medium-duration batteries for daily grid firming, plus 5 GW of long-duration storage. The 15 Tender 8 projects add 4.2 GW to an existing fleet of around 7 GW of operating grid-scale batteries, with all new capacity due online before the end of 2029.
More Information
Australian Tenders monitors procurement opportunities from government agencies across Australia, including federal, state and territory departments, authorities and government-owned organisations. By bringing opportunities together in one place, we help businesses navigate the procurement landscape, identify relevant tenders and stay informed about the policies and spending priorities shaping future contract opportunities.
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