Mallesons advises on South Australia’s Firm Energy Reliability Mechanism Tender Round 1

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Mallesons advised AusEnergy Services Limited (“ASL”) on Tender Round 1 for the Firm Energy Reliability Mechanism Agreements (“FERMAs”) under South Australia’s Firm Energy Reliability Mechanism (“SA FERM”).  

The SA FERM is designed to support the delivery of long-duration, dispatchable capacity to ensure a secure, reliable and affordable electricity supply for South Australia, while contributing to the State’s Firm Energy Target. The FERMAs provide revenue certainty and incentivise strong operational performance by underwriting a portion of a project’s annual net revenue.

Long-duration dispatchable capacity - defined as generation or storage capable of delivering electricity continuously for more than eight hours - will play a critical role in maintaining system reliability as thermal generation is progressively retired. 

ASL announced the award of six FERMAs in Tender Round 1, representing a combined committed output capacity of 517 MW. The outcome marks a significant milestone in the delivery of South Australia’s inaugural FERM tender. 

The successful projects in Tender Round 1 are: 

Facility Name
Proponent
Technology
Committed Capacity
Nameplate Capacity

Northern Battery

Ampyr Energy

Lithium-ion BESS

125 MW | 1000 MWh

270 MW | 1080 MWh

Tungkillo BESS

Iberdrola

Lithium-ion BESS

100 MW | 800 MWh

270 MW | 1080 MWh

Goyder Battery Stage 1

Neoen Australia

Lithium-ion BESS

75 MW | 600 MWh

200 MW | 800 MWh

Goyder Battery Stage 2

Neoen Australia

Lithium-ion BESS

75 MW | 600 MWh

200 MW | 800 MWh

Brinkworth BESS

Akaysha

Lithium-ion BESS

92 MW | 736 MWh

250 MW | 1000 MWh

Dartmoor BESS

ZEBRE

Lithium-ion BESS

50 MW | 400 MWh

144 MW | 576 MWh

The Mallesons team was led by Partners Vishal Ahuja  and Jess Kruger, supported by Specialist Energy Counsel David Ellis, Special Counsel Tracey Jordan, Senior Associates Capucine Hague, Jacqueline Field, Matthew Caldow and Samantha Chin, Solicitors Eliza Saville, Georgia Peake, Michelle Thomes, Matt Clarke, Claire Ng, Shanzeh Malik, Jenna Akers, Bec Sadique, Isabel Frudenstein and Alistair Booth. 

Commenting on the tender, Jess Kruger said:  

“It has been a privilege to continue supporting ASL following our work on the LTESA tenders, and to assist on this inaugural SA FERM tender. This program represents an important step in strengthening grid reliability in South Australia as the energy transition accelerates. We congratulate ASL and all successful proponents on this significant achievement.”

Mallesons has extensive experience advising on renewable energy and storage tender processes across generation, firming and long-duration storage infrastructure, and continues to support market-leading transactions driving Australia’s energy transition. 

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