EDP fast-tracks 1.7GW of solar and storage in Australia following Capacity Investment Scheme award
Australia, 13 October 2025 – EDP, through EDP Renewables Australia (EDPR Australia), has secured a major boost with long-term revenue certainty for its Australian portfolio after being awarded generation revenue schemes under the Australian Government’s Capacity Investment Scheme (CIS) Tender 4 for two flagship hybrid projects: Punchs Creek Renewable Energy Project in Queensland and Merino Hybrid Project in New South Wales. Together, these projects will add over 1.7GW of solar and battery storage to Australia’s energy mix.
Located in the Toowoomba region of Queensland, the Punchs Creek Renewable Energy Project comprises 480MWp (400MWac) of solar co-located with a 400MW/1,600MWh battery energy storage system (BESS). The Merino Hybrid Project, near Goulburn in New South Wales, comprises 530MWp (450MWac) of solar co-located with a 450MW/1,800MWh BESS. Together these projects will accelerate the addition of new renewable capacity into the National Electricity Market.
The Punchs Creek Renewable Energy Project is expected to reach Financial Close in 2026, with commissioning expected for early 2029. The Merino Hybrid Project is expected to reach Ready-to-Build status in the second half of 2026.
Once operational, the two hybrid projects will collectively feature 1.5 million solar panels across 1,600 hectares, generating approximately 2.2TWh of clean and renewable energy annually. At times of peak demand, the projects will be capable of supplying clean energy to about 380,000 Australian households.
Beyond emissions reductions and supporting national goals, these projects will deliver tangible benefits to local communities. Construction is expected to create over 1,600 local jobs, with increased economic activity for retailers and service providers in the surrounding areas. EDPR Australia is committed to investing in the communities where it operates, with up to AUD 17 million allocated for shared benefit programmes that will directly support local communities and First Nations people.
“This CIS award is a testament to EDP’s leadership and proven track record in delivering large-scale, high-quality renewable projects. With over AUD 2 billion planned investment and a 4GW pipeline, EDP is accelerating our contribution to the country’s renewable energy targets. This reflects our strong belief in Australia's potential and our commitment to leading its energy transformation,” commented Miguel Fonseca, CEO of EDP Renewables APAC.
“Our commitment to the Millmerran, Tirrannaville and Goulburn communities are at the heart of these projects. We are grateful to Federal Energy Minister, the Hon Chris Bowen for the vital support. Securing generation revenue schemes under the CIS strengthens and affirms our ambition to accelerate Australia’s energy transition through high-quality, sustainable growth,” said Simon Franklin, EDP Renewables Australia Country Director.
EDPR Australia continues active engagement with offtakers for its pipeline projects. Market interest remains strong in well-designed, high-quality developments, demonstrating EDPR Australia’s proven capabilities and the robustness of these assets. The company is also progressing discussions with offtakers for its portfolio of ensuing projects in Queensland and New South Wales.
EDPR Australia’s pipeline of ~4GW includes more than 30 town-scale and large projects, as part of the company’s drive for a sustainable energy future across Australia. The company views Australia as a key market with strong fundamentals for renewables and is focusing on scaling hybrid projects, with the aim of deploying more than 2GW of solar, wind and storage by 2030 in the market.
For more information on the projects or to express interest in seeking long-term access to reliable, low-carbon energy, email australia@edp.com.