The federal government announced the winners of the fourth Capacity Investment Scheme (CIS) tender on 9 October 2025. This round supports 6.6 GW of new renewable generation capacity in the NEM, with more than half co-located with battery energy storage. It builds on the previous generation CIS round announced in late 2024 and the dispatchable CIS tender released just last month.

This article reviews the awarded projects and highlights key trends emerging from the latest round.

​Executive summary:

• The fourth CIS tender awarded 6.6 GW of contracts to new renewable generation projects across the NEM, split between 56% solar capacity and 44% wind.
• More than half of the total capacity is co-located with battery energy storage systems (BESS), mostly through solar projects. One co-located wind-and-battery project also secured a contract.
• The 3.4 GW of co-located BESS capacity is slightly below the 4 GW awarded in CIS Round 3, but three times higher than the amount in the previous generation round.
• These hybrid projects continue the broader industry trend toward co-location, especially with solar.

(For background on the CIS and LTESA frameworks, see our article here.)

For more on how the background of the scheme, read our article on LTESAs and the CIS here.

3.4 GW of hybrid BESS capacity awarded contracts in CIS tender round 4

Twelve hybrid BESS projects won contracts in this round, eleven of which are co-located with solar. Project sizes range from 95 MW to 500 MW, with batteries split evenly between two and four hours in duration.

Edify Energy and EDP Renewables emerged as the biggest winners, securing 900 MW and 850 MW of BESS capacity respectively. Of the nine companies awarded hybrid contracts, seven (including EDPR) are new participants in the CIS scheme.

Together, these projects represent 3.5 GW and 11.4 GWh of co-located BESS capacity. This is below the record set in CIS Round 3 but triple the capacity awarded in Round 1, the previous generation tender.

New South Wales continues to lead with 1.4 GW of awarded BESS capacity, followed by Queensland with 1.1 GW. Between the CIS and LTESA, government schemes continue to support accelerated BESS development in NSW. The state accounts for accounts for 45% of BESS capacity with government underwriting

Wider co-location trends continue in the CIS

CIS tender round 4 adds 2.7 GW of hybrid BESS capacity to Modo Energy’s existing 5.5 GW hybrid pipeline. These projects reflect the market’s preference for solar co-location and balanced sizing.

On average, hybrid solar and BESS projects in this round include batteries rated just below 100% of the solar capacity. Two projects - Bundey and Corop - feature batteries larger than their solar components, mirroring trends across the broader pipeline. Overall, 84% of hybrid solar-BESS projects have batteries sized above 75% of the solar capacity, and over half match or exceed a 1:1 ratio.

The single wind hybrid project, Gawara Baya, includes a battery sized at 25% of its renewable generation capacity. This aligns with other co-located wind projects Mallee and Kangaroo Hills, which feature battery ratios of 25% and 18%, respectively.

These trends are driven by revenue optimisation and wider project benefits from co-location. For more, check out our article on the revenue impacts of co-location sizing here.

LTESA and CIS schemes continue with new tenders launching soon

The next Long-Term Energy Service Agreement (LTESA) firming tender launched last week. This seeks 500 MW of firming generation to enhance reliability in the Sydney–Newcastle–Wollongong region during peak demand. Find more details here.

Two further CIS tenders are expected to launch in Q4 2025, targeting both generation and dispatchable capacity in the NEM. Each is likely to match the scale of rounds 3 and 4, following the government’s expansion of the Capacity Investment Scheme announced in July.

wendel@modoenergy.com