Senate Environment and Communications Legislation Committee, , 3:39:05 to 4:01:59
Discussion on the net present value of CIS contracts and the status of ongoing negotiations for projects before the committee adjourns for lunch.
Topics: Capacity Investment Scheme, Government spending
Speakers: Hon Sarah Henderson, Hon Tim Ayres, Speaker 13, Speaker 21, Unknown Speaker, Mr Mike Kaiser, Ms Kushla Munro, Varun Ghosh
Uh I can't comment on that Senator but but as I said it doesn't mean that these projects won't proceed. They have withdrawn from various tenders right back from from our earlier tenders and we would expect um many of those to be successful under the capacity investment scheme or or in other schemes um and
document obtained by the opposition, it was revealed that nine projects had entered into contracting negotiations, but those negotiations had ceased. So is can you just give us the the change in that number since the last estimates if you have that number available?
>> Uh so so I think it's gone from 9 to to 27.
>> Okay. So that is right. It was nine and that is the 27 amount >> figure. Correct. >> Uh so we are you able to explain were there any force majour events which were cited in relation to those either those 27 projects uh or relating to the contracted projects?
>> No force majour events senator.
>> Right. Okay. Uh Minister Bowen has said that delivery of the CIS has not been linear. can you advise the total cost of the CIS? What's the expenditure the total
So, Senator, um it depends a bit on what uh costs you're referring to. Exactly. So, are you speaking about the departmental funding that we've expended on the scheme?
>> I'm I'm talking about total costs and I would appreciate
>> You mean the contract Do you mean the contracted costs or the or the department's administration costs? It's the contracted costs. I think you're
>> the contracted cost, but also the the contribution from the Australian
So I think Senator, if I can help the a lot of these um you mentioned earlier a lot of these projects haven't started operating yet and they we won't make any payments until they start operating but the um the value in net present value terms of the contracts that we entered into is I think 1.023 billion
>> 1.23
>> 1.023 023
>> billion >> Uh could we get a breakdown of of each contract?
>> Uh I have to take that on notice.
>> So that's each contract that's each contracted project
of contracts entered into to date.
>> Oh as as at 30 June
>> as at 30 June. So, so just I mean maybe for more context Senator the I mean the Mr. Brian will be able to tell us what how you know what the total um scale of those in is in gawatt terms. But since May 22, we've added over 27 gawatt of new generation capacity to the um since um since 2022 um which is why I was so exercised earlier about uh what happened in the almost a decade prior to that where almost no new capacity was added to the grid. So 27 not all of that is capacity investment scheme activity and of course it's it's like uh you know you announce an apprentice scheme apprentices start but they take four years to finish. So completion rates don't really apply until the end of the apprenticeship. Um same with these projects they take some years to um they take some years to be um constructed and then connected into
>> Yeah. I know. I'm just um
>> so if you have a last question otherwise I we can
>> look I'm just wondering if I
>> we won't have time now unfortunately. It's now 12:45.
>> All right. No, thank thanks very much. Thank you.
>> We will adjourn for the lunchon interval and we will be back in 1 hour at 1:45 p.m. Thank you very much. With that come