Peak energy bodies, consumer groups and climate advocates have welcomed the expansion of the Capacity Investment Scheme (CIS), bringing forward investment and placing downward pressure on electricity prices for consumers, including households and industry.
The federal government will deliver more reliable electricity to all Australians through the expansion of the existing CIS and the National Energy Transformation Partnership (NETP), in conjunction with the states.
“The Australian Aluminium Council welcomes the expansion of the Capacity Investment Scheme bringing forward investment and placing downward pressure on electricity prices for consumers, including households and industry,” shared the Australian Aluminium Council team.
This investment will supercharge available power in the energy grid, delivering the long-term reliable, affordable and low-emissions energy system Australians deserve as the grid changes.
“Energy Consumers Australia welcomes this morning’s announcement which is both an important step in providing reliable supply to consumers and also a continued firm commitment by Federal and jurisdictional governments to achieving Australia’s Net Zero targets,” the Energy Users’ Association of Australia (EUAA) said.
The CIS underwrites new renewable generation and storage, providing certainty for renewable investors and cheaper, cleaner energy for households and businesses. It also recoups money for taxpayers when revenues are high.
This expansion will take the CIS from the current pilot stage to 9 GW of dispatchable capacity and 23 GW of variable capacity nationally – for a total of 32 GW nationally.
“At a time when investment in renewables has been decreasing, the Government’s expanded CIS to 9 gigawatts (GW), and plan for 23GW renewable energy auctions, will be critical to boosting the deployment of wind, solar and storage capacity across Australia and meeting the 82 per cent renewable energy target by 2030,” Energy Consumers Australia said.