29 May 2026

 

ASL today announced the outcomes of South Australia’s first Firm Energy Reliability Mechanism (SA FERM) Tender Round (Tender 1), establishing an initial pipeline of long‑duration firm capacity to support a secure, reliable and affordable electricity supply as the state progresses towards its target of net 100 per cent renewable electricity by 2027. 

Following a competitive tender process, six battery energy storage projects, totalling 1,334 MW / 5,336 MWh have been awarded Firm Energy Reliability Mechanism Agreements (FERMAs).  

FERMAs are long-term contracts designed by the South Australian Government that provide revenue certainty to support investment in long-duration firm capacity, while requiring projects to deliver reliable, dispatchable energy during periods of system stress. The FERMA includes performance obligations for projects to provide a ‘committed output capacity’ during Forecast LOR 2 and 3 events, to support South Australian households and business during times of tight supply-demand balance. 

The projects will collectively provide a committed output capacity of 517 MW / 4,136 MWh, which is the capacity that projects must be able to dispatch continuously for at least 8 hours during these times of tight supply-demand balance.      

SA FERM Tender 1 was delivered within a compressed timeframe and sought long‑duration capacity across multiple delivery horizons. The projects awarded under the first tender are expected to deliver a committed output capacity of: 

  • 375 MW / 3000 MWh by November 2028; and 
  • a further 142 MW / 1136 MWh by November 2029 

ASL was appointed as the independent Scheme Administrator for SA FERM in late 2025 and is responsible for administering the competitive tender process, assessing bids, and overseeing establishment of the scheme. In February 2026, the SA FERM scheme’s Financial Vehicle was established to hold and administer scheme funds and act as counterparty to FERMAs. 

Tenders are conducted by ASL in accordance with directions from the South Australian Minister for Energy and Mining. Further SA FERM tender rounds are planned to support additional long‑duration firm capacity as South Australia transitions to net 100 per cent renewable electricity. 

Further information on the successful projects and ASL’s assessment of bids is available in the SA FERM Tender 1 Market Briefing Note here.  

Quotes attributable to Nevenka Codevelle, Chief Executive Officer ASL  

“South Australia’s electricity system has already undergone a substantial transformation, with renewable generation now supplying more than 70 per cent of the state’s electricity. The projects secured through SA FERM Tender 1 will strengthen the power system by adding additional reliable, long‑duration dispatchable capacity.” 

“The tender attracted robust competition, with successful projects performing strongly against the key assessment criteria. ASL’s evaluation prioritised projects with a clear and credible pathway to commercial operation, a meaningful contribution to system reliability, and strong value for SA electricity consumers.” 

“These outcomes represent a solid foundation for the SA FERM scheme. We look forward to delivering future tender rounds and enabling additional long‑duration capacity to support the ongoing security and reliability of South Australia’s electricity system.” 

 

Last updated 29 May 2026