Firm Energy Reliability Mechanism stage 2 now out for consultation

Submissions have now closed.

Submissions were invited on the government's approach to ensuring reliable and secure electricity for South Australians, now and into the future.

With South Australia at the forefront of the national energy transition to low emission sources, it is vital to ensure system reliability and resilience to provide certainty to energy users and reduce the risk of consumer exposure to price shocks and unmet electricity demand.

The South Australian Government is advancing the Firm Energy Reliability Mechanism (FERM) framework to support sufficient long duration firm capacity to ensure secure, reliable and resilient electricity supply for South Australia, at least cost to consumers.

In 2024, the Department for Energy and Mining ran the first stage of consultation, receiving feedback on the proposed scheme's design and objectives, and how it would operate to support sufficient long duration firm capacity.  Accommodating the collective feedback, the department has progressed key design features to prepare draft regulations to support the implementation of the FERM.

What is being decided

This stage of consultation was an opportunity to provide specific feedback to inform the final detailed design of the scheme ahead of implementation.

Documents

Frequently asked question

The Department wishes to clarify that references to inclusions/exclusions refer to annual submissions made to the Financial Value (FV) for calculation of payments. Proponents may wish to build up their bid variables accounting for costs/revenues attributable to their project, noting that FV is a key bid assessment criteria.

The Department has become aware of some minor inconsistencies between the draft term-sheet and guidelines provided and has also up-loaded new versions of each to clarify.

Discussion forums

In-person and online discussion forums were held on Wednesday 25 June 2025 and Friday 27 June 2025.

Submissions

Interested stakeholders were invited to:

  • Provide an online response or upload a submission via  the South Australian government YourSAy website
  • Email a submission to dem.ferm@sa.gov.au
  • Post a written submission to:
    Department for Energy and Mining
    Firm Energy Reliability Mechanism - Stage 2 Consultation
    GPO Box 618, Adelaide, South Australia 5001

Submissions have now closed.

Submissions received

Next steps

We will continue with detailed design of the Firm Energy Reliability Mechanism, incorporating feedback received throughout this consultation to inform the drafting of regulations. The published regulations are anticipated to be released in late 2025.