Friday 29 May
Six battery energy storage projects will be fast-tracked to bolster the resilience of South Australia’s energy system, more than doubling the state’s large-scale battery storage capacity.
Tenders for long-duration capacity have been awarded under the state’s Firm Energy Reliability Mechanism (FERM), fast-tracking private investment in large-scale battery energy storage systems (BESS) that will take South Australia’s battery storage capacity from 1.1 GW to 2.5 GW, which means more than 517 MW of dispatchable energy that can power more than 300,000 average households for up to eight hours.
These contracts will see added battery capacity equivalent to almost three-quarters of South Australia’s all-time peak demand.
Tenders called for the private sector to provide long-duration capacity under the FERM, to ensure the state always has eight hours of continuous dispatchable energy available for unexpected circumstances.
The combined BESS projects under the FERM tender will add more than four times the capacity of the expanded Hornsdale battery, the first grid-scale battery in Australia.
The scheme establishes contracts with eligible existing and new long-duration firm capacity power generators, effectively underwriting a portion of their revenue to create financial certainty for market proponents outside of sporadic and infrequent high price events. The availability of this firming generation will be critical for maintaining the reliability of South Australia’s electricity system.
This initial tender round resulted in six battery energy storage projects being awarded Firm Energy Reliability Mechanism Agreements (FERMAs) totalling 517 MW / 4,136 MWh of dispatchable energy.
The successful projects are:
- Brinkworth BESS - Akaysha Energy - 250MW / 1000MWh
- Dartmoor BESS - ZEBRE Pty Ltd - 144 MW / 576 MWh
- Goyder Battery Stage 1 - Neoen Australia - 200 MW / 800 MWh
- Goyder Battery Stage 2 - Neoen Australia - 200 MW / 800 MWh
- Northern Battery - AMPYR Australia - 270MW / 1080MWh
- Tungkillo BESS - Iberdrola Australia - 270MW / 1080MWh
The successful tenderers are required to have their committed output available to dispatch continuously for eight hours when required. These projects will be delivered in stages: the first 375 MW / 3000 MWh by November 2028, and a further 142 MW / 1136 MWh by November 2029.
The tender was run independently by ASL, the scheme administrator appointed by the South Australian Government. See ASL’s news release here: SA FERM Tender 1 secures first wave of long-duration capacity to strengthen South Australia’s electricity system
