South Australia awards contracts for 5.3 GWh of battery storage

AusServices Ltd (ASL) has announced six long duration battery energy storage system (BESS) projects totalling 1,334 MW/5,336 MWh have been awarded Firm Energy Reliability Mechanism Agreements (FERMAs) in South Australia’s FERM Tender Round 1.

Together, they are four times the capacity of the expanded 150 MW/193 MWh Horndale Power Reserve (HPR).

Two agreements were allocated to France-headquartered clean energy developer Neoen Australia for its Goyder Battery 600 MWh Stage 1 and 600 MWh Stage 2.

One agreement each was awarded to Singapore-based Ampyr Energy’s 1 GWh Northern Battery, Spain-based Iberdrola’s 800 MW Tungkillo BESS, Victorian-based Blackrock-owned Akaysha Energy’s 736 MWh Brinkworth BESS, and US-headquartered ZEBRE’s 400 MWh Dartmoor BESS.

Committed output capacity of the projects during Forecast LOR 2 and 3 events is 517 MW/4,136 MWh, which the projects must dispatch continuously for at least 8 hours during times of tight supply-demand balance.

3,000 MWh of output capacity is expected by November 2028, followed by the additional 1,136 by November 2029.

ASL Chief Executive Officer Nevenka Codevelle said the tender attracted robust competition.

“ASL’s evaluation prioritised projects with a clear and credible pathway to commercial operation, a meaningful contribution to system reliability, and strong value for SA electricity consumers,” Codevelle said. “Renewable generation [is] now supplying more than 70% of the state’s electricity. The projects secured through SA FERM Tender 1 will strengthen the power system by adding additional reliable, long‑duration dispatchable capacity.”

SA Premier Tom Koutsantonis said too often the state has seen wholesale prices falling but price spikes for consumers due to isolated events where there is a lack of firming capacity.

“Now we are helping fast-track projects that will more than double the state’s large-scale battery storage capacity and support an estimated AUD 2.2 billion ($1.5 billion) of local investment in new storage projects,” Koutsantonis said. “These will grow batteries’ contribution to our state’s generation capacity to more than double that of Victoria, New South Wales and Queensland, adding capacity to reach almost three-quarters of South Australia’s all-time peak demand, eclipsing all other major Australian grids.”