ASL has been appointed administrator of South Australia’s Firm Energy Reliability Mechanism (FERM) and will open the first long-duration storage tender later this month.
The FERM is a South Australian Government initiative to secure long-duration storage capacity projects capable of providing secure, reliable and affordable electricity supply for the state.
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The scheme administrator is an independent role, responsible for designing and conducting competitive tenders to secure this capacity. Successful projects must support the long-term financial interests of South Australian electricity consumers by demonstrating financial value in their bids.
The tender will target 700MW of capacity across three timeframes:
- 400MW by November 2028
- 200MW by November 2029
- 100MW by November 2031.
ASL is also responsible for the establishment of governance and financial arrangements for the FERM, development of a risk management framework and the appointment of a financial vehicle. The appointment of the financial vehicle is now underway, with this separate entity the counterparty for contracts awarded under the scheme.
ASL CEO Nevenka Codevelle said, “Delivery of the FERM is already well-underway, with ASL directed to undertake the first tender targeting 700MW of long-duration storage capacity, including 400MW by November 2028
“The tender will open later in October and is technology neutral, with gas generation and batteries examples of eligible technologies.
“ASL has released important briefing materials that provide guidance on our tender process and bid criteria, which is a useful tool for prospective participants who should start preparing for the tender opening now.
“As scheme administrator, we can only support projects that are in the long-term financial interests of South Australian electricity consumers, which means we’ll be rigorously assessing benefits to system reliability, security and impact on wholesale electricity prices as well as scheme forecast cost and potential cost exposure of bids.
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“I strongly encourage potential tender participants to put their best foot forward when it comes to delivering value for South Australians.”
More information and briefing materials are available on ASL’s website.
