The object of the Regulations is to establish a scheme and a fund for the purposes of providing long duration dispatchable electricity capacity to ensure secure, reliable and affordable electricity supply for the state.

• National Electricity (South Australia) (Firm Energy Reliability and Orderly Exit Management) Regulations 2025

The FERM aims to support both existing and new long duration firm capacity providers through a combination of capacity commitments, tender processes, and long-term contracts. The mechanism is intended to complement broader national energy reforms while addressing South Australia's unique energy reliability challenges.

Key parts of the Regulations include:

• The Minister’s declaration of a Firm Energy Target (FET), that is the required amount of long duration firm capacity to ensure secure, reliable and affordable electricity supply.
• The Notice of Intention (NOI) process, enabling an improved understanding of future intentions of existing long duration capacity providers to support setting an efficient but prudent FET.
• Arrangements for tendering and contracting with long duration firm capacity providers for the purposes of meeting the FET.
• The Scheme’s governance structure including the appointment of independent scheme entities, which include scheme administration, financial and regulation functions and obligations.
• The establishment and operation of the Scheme Fund including recovery of costs from all electricity consumers.
• Related liquidity and reliability obligations that seek to maximise contracting of long duration firm capacity and reduce the need for underwriting support.
• Application of the Orderly Exit Management Framework (OEMF) in South Australia, providing the South Australian government with the ability to manage an orderly exit of existing long duration firm capacity, where required.
• A civil penalty regime in relation to obligations outlined in the Regulations.

As per regulation 7 of the Regulations, the Minister may make a declaration prescribing the quantity of long duration dispatchable electricity capacity that the state requires over a specified period (the Firm Energy Target),

The Minister may at any time —

(a) vary the Firm Energy Target; or

(b) establish a new Firm Energy Target that is to apply in relation to an ensuing specified period.

FET Declarations

FET Declarations 2026-27 to 2030-31 (PDF, 14.8 KB)

As per regulation 22 of the Regulations, the Minister may direct the Scheme Regulator to issue a request (an NOI request) to recognised electricity entities to submit a notice of intention (an NOI) to the Scheme Regulator in accordance with this regulation.

An NOI must—

(a) be summitted in a form specified by the Minister's guidelines; and

(b) in respect of a period specified in the NOI request (a commitment period) indicate—

(i) the recognised electricity entity's intention in respect of the provision of long duration dispatchable electricity capacity; and

(ii) the level of long duration dispatchable electricity capacity that the recognised electricity entity intends to provide in the NEM during the commitment period; and

(c) include any other information specified by the Minister's guidelines.

The Minister has directed ESCOSA, as Scheme Regulator, to issue a Notice of Intention (NOI) request to recognised electricity entities for the periods 2028–29 and 2029–2030.

Ministerial guidelines
The Minister's guidelines capture the Minister's requirements for the NOI process.

List of recognised electricity entities
The list of Long duration capacity providers outlines capacity providers recognised by the Minister as a suitable participant in the FERM scheme.

The Minister directed ASL, as Scheme Administrator, to undertake a competitive tender to assist in meeting the FET, pursuant to regulation 24(1) of the Regulations. An initial tender round is now complete. Information on the successful proponents is available on the ASL website asl.org.au/tenders/sa-ferm-tender-round-1.

• Read ASL's media release: SA FERM Tender 1 secures first wave of long-duration capacity to strengthen South Australia's electricity system
• News release from Department for Energy and Mining: New energy projects to underpin South Australia's capacity

All queries regarding Tender 1 should be directed to SAFERM.Tender1@asl.org.au

As per regulation 9 of the Regulations, the Minister may appoint a person or body to carry out—

(a) scheme administration functions (a Scheme Administrator); or

(b) scheme regulation functions (a Scheme Regulator).

AusEnergy Services Limited (ASL) has been appointed as Scheme Administrator, pursuant to regulation 9(1)(a) of the National (South Australia) (Firm Energy Reliability and Orderly Exit Management) Regulations 2025 (the Regulations).

The Essential Services Commission of SA (ESCOSA) has been appointed as a Scheme Regulator, pursuant to regulation 9(1)(b) of the Regulations.

The Australian Energy Regulator (AER) has been appointed as a Scheme Regulator, pursuant to regulation 9(1)(b) of the Regulations. The AER's functions in this role are outlined in the attached Schedule A: AER functions as Scheme Regulator (PDF, 1.1 MB)

Regulation 33 of the FERM Regulations provides for the introduction of market liquidity and reliability obligations on market participants to support the scheme's objectives.

The market liquidity obligation (MLO) is an obligation on specified long duration firm capacity (LDFC) providers to undertake certain contracting activities, and to take related steps, in the National Energy Market (NEM) by offering a certain number of contracts, or having a certain net contracting position, over a particular period, in accordance with requirements specified in Minister's guidelines.

The MLO guidelines commence on 1 October 2026.

• FERM Market Liquidity Obligation (MLO) Guidelines (2026)
  (PDF, 259.5 KB)

The reliability obligation is an obligation on Market Customers to undertake certain contracting activities, and to take related steps, in NEM by purchasing a certain number of contracts, or having a certain net contracting position, over a particular period, in accordance with requirements specified by the Minister's guidelines.

The department has elected to delay the introduction of the reliability obligation and will re-assess the need for this initiative following implementation of broader system reforms.

We will continue to review and add to these questions and answers.

• FERM frequently asked questions