The Capacity Investment Scheme (CIS) is a national initiative designed to promote investment in renewable energy sources like wind and solar, as well as clean, dispatchable options such as battery storage. Its primary goal is to boost clean energy capacity while decreasing dependence on fossil fuels. Under the scheme, the Australian government provides long-term guarantee agreements for projects selected through competitive tenders. These agreements include a predefined revenue floor and ceiling, mitigating investment risks and barriers.

In November 2023, the government announced an expansion of the CIS, aiming to deliver 32 GW of new clean energy capacity by 2030. This target includes 23 GW of variable renewable energy and 9 GW of dispatchable capacity, such as battery storage. The expansion marks a significant increase from the original CIS, which aimed to achieve 6 GW of new capacity by 2030.