CIS - 75 projects

Question

The Australian Government intends to underwrite 75 projects under the Capacity Investment Scheme (CIS). The projects listed may be a high-risk financial burden to the Australian Government and consolidated revenue due to the uncertainty of future electricity prices and project revenues that fall outside of government control. 1. In relation to each of the separate 75 projects advise if said projects will be owned and/or operated by Australian or Foreign entities? 2. What is the quantifiable estimate sum total for all 75 projects assuming that they meet the materiality threshold and in a worst case scenario where the Australian Government would be required to pay a project operator 90 per cent of the revenue shortfall up to the agreed annual cap for 15 years? I expect the questions to be answered given there is no risk of breaching commercial in confidence nor commercial sensitivities due to the collective nature of question 2 and answer sought as a total figure in a worst case scenario for all 75 projects aligned with the CIS. The projects are published in Budget Paper No 1. Statement 9: Statement of Risks | Page 305 as QUANTIFIABLE and in accordance with the Charter of Budget Honesty Act 1998, I expect quantifiable financial information to be provided in your answer to me as a Senator consistent with the budget estimates process.

Answer

Please see the attached answer.

Documents

• Question with answer (PDF) (opens in a new tab)
• SQ26-000714.pdf (opens in a new tab)