Neoen has secured two 15-year capacity service contracts in South Australia’s inaugural Firm Energy Reliability Mechanism (FERM) tender round, administered by AusEnergy Services Limited (ASL), marking a significant milestone in the state’s ongoing energy transition.
Under the FERM framework, committed capacity must be available to dispatch continuously for eight hours whenever required, helping to maintain the balance between electricity supply and demand across South Australia’s grid.
The two 75 MW, eight-hour contracts awarded to Neoen will be delivered through Stages 1 and 2 of the Goyder Battery, a 454 MW, 1,814 MWh project located in the state’s Mid North, on the land of the First Peoples of the River Murray and Mallee Region.
Goyder Battery forms part of the broader Goyder Renewables Zone, Neoen’s flagship renewable energy hub that also encompasses the Goyder South and Goyder North wind farms.
Neoen issued notices to proceed for Stage 1 (227 MW, 907 MWh) in December 2025, engaging battery storage supplier Tesla and balance of plant contractor UGL, a member of the CIMIC Group.
The company has now executed contracts with both partners for an equally sized Stage 2.
The battery will connect to ElectraNet’s Bundey substation and will be among the first projects in Australia to deploy Tesla’s new Megablock technology.
Site works are scheduled to begin in August 2026, with the asset expected to enter operation in 2028.
Beyond its energy contribution, Goyder Battery is projected to generate more than 150 jobs at peak construction and at least 12 permanent operational roles.
The project will also deliver benefits to First Nations communities and the local environment, while contributing funds to Neoen’s existing community benefit sharing program supporting a range of near term and legacy initiatives across the region.
With the addition of this asset, Neoen Australia’s total storage capacity now reaches 2.7 GW and 9.1 GWh either in operation or under construction, reinforcing the company’s position as the country’s leading battery owner and operator.
Jean Christophe Cheylus, Neoen’s Regional CEO for Australia Pacific, thanked the South Australian Government for its continued trust and highlighted the speed of the rollout, noting that the second stage of Goyder Battery has launched just six months after the first.
He credited the achievement to the dedication of Neoen’s team and its partners, adding: “This is our 12th battery with Tesla in Australia, taking our combined capacity beyond 2 GW, and our 9th project with UGL.”
The Hon. Tom Koutsantonis MP, South Australia’s Minister for Energy and Mining, pointed to the broader impact of the FERM program on the state’s energy resilience, stating: “South Australia’s Firm Energy Reliability Mechanism is fast-tracking private investment in large-scale battery energy storage systems that will collectively more than double our state’s battery storage capacity.”
Xavier Barbaro, Neoen’s Group CEO, reflected on the company’s history in the sector, noting that Neoen installed the world’s first big battery in South Australia back in 2017.
He said: “Since we installed the world’s first big battery in South Australia back in 2017, we have continued to pioneer innovative solutions and deepen our expertise in energy storage, resulting today in a global capacity over 10 GWh in operation or under construction.”
The Goyder Battery project underscores the growing role of large scale storage in accelerating Australia’s shift toward renewable energy, positioning South Australia as a continued leader in the national transition.
