Wedoany.com Report-Oct. 13, Portuguese energy company EDP announced on Monday that it plans to accelerate its solar and battery storage developments in Australia after securing long-term revenue support from the government’s Capacity Investment Scheme (CIS). The company said the awards would help advance two major renewable energy projects that will collectively contribute more than 1.7 gigawatts of new capacity to Australia’s power system.

EDP's (Energias de Portugal) logo is pictured in a storefront in Lisbon, Portugal, May 9, 2025.

According to EDP, its subsidiary EDP Renewables Australia (EDPR) received generation revenue contracts under the CIS for the Punchs Creek and Merino projects. These developments are intended to enhance the country’s renewable energy infrastructure and provide reliable, clean electricity as part of Australia’s broader transition toward sustainable power generation.

The Punchs Creek project, located in Queensland’s Toowoomba region, will include a 480-megawatt-peak (MWp) solar facility paired with a 400-megawatt battery energy storage system (BESS). EDP expects to reach financial close for the project in 2026, with commissioning planned for early 2029. The large-scale installation is designed to deliver stable power output and support grid reliability by storing excess solar energy for use during peak demand periods.

The Merino project, situated near Goulburn in New South Wales, will integrate a 530 MWp solar generation system and a 450 MW BESS. EDP stated that this project is anticipated to reach ready-to-build status in the second half of 2026. Once operational, Merino will play a key role in strengthening the renewable energy supply across the state, providing flexibility to balance fluctuating power demand.

Australia’s Capacity Investment Scheme was introduced to attract private investment into renewable and dispatchable clean energy assets. It provides long-term revenue guarantees, reducing market risks for investors and helping accelerate the construction of large-scale clean energy projects such as solar farms and battery systems. The initiative supports the Australian government’s target of achieving a cleaner and more resilient power grid while maintaining energy affordability and security.

EDP emphasized that the CIS awards represent an important step in expanding its presence in the Asia-Pacific renewable energy market. The company’s strategy focuses on integrating solar generation with advanced battery technology to ensure stable electricity supply and improve energy efficiency. Through its Australian subsidiary, EDP aims to contribute to the country’s renewable energy goals by developing projects that combine innovation, environmental responsibility, and long-term value creation.

The firm noted that both the Punchs Creek and Merino projects align with EDP’s global objective of achieving full carbon neutrality by 2040. By advancing these large-scale renewable developments, EDP seeks to strengthen its position as a key contributor to the energy transition in Australia and reinforce its commitment to expanding clean energy capacity worldwide.