Neoen, one of the world’s leading renewable energy companies, has been awarded two 15-year capacity service contracts in South Australia’s inaugural Firm Energy Reliability Mechanism (FERM) tender round, administered by AusEnergy Services Ltd (ASL).
The committed capacity must be available to dispatch continuously for eight hours when required, in order to maintain the balance between supply and demand in the state’s electricity system.
The two 75 MW/8-hour contracts will be delivered by Stages 1 and 2 of Goyder Battery (454 MW/1814 MWh) located in the state’s Mid North on the land of the First Peoples of the River Murray and Mallee Region. The project is part of Goyder Renewables Zone, Neoen’s flagship renewable energy hub which also includes Goyder South and Goyder North wind farms.
Neoen provided notices to proceed for Stage 1 (227 MW/907 MWh) in December 2025 to battery storage supplier, Tesla, and balance of plant contractor UGL (a member of the CIMIC Group) and has now executed contracts with both for an equally sized Stage 2. Goyder Battery will connect to ElectraNet’s Bundey substation and will be one of the first projects in Australia to deploy Tesla’s new Megablock technology. Site works will commence in August 2026, and the asset is expected to start operating in 2028.
Goyder Battery will create more than 150 jobs at peak construction and at least 12 permanent roles during operations. It will deliver benefits to the First Nations communities and the local environment as well as contribute funds to Neoen’s existing community benefit-sharing programme for Goyder Renewables Zone which supports a wide range of near-term and legacy initiatives across the region.
With this new asset, Neoen Australia’s total storage capacity now stands at 2.7 GW/9.1 GWh in operation or under construction, cementing its position as the country’s leading battery owner and operator.
Jean-Christophe Cheylus, Neoen’s Regional CEO for Australia Pacific, commented: “I would like to thank the South Australian Government for once again placing their trust in us. The launch of the second stage of Goyder Battery, just six months after the first, highlights the pace at which battery storage is becoming critical to Australia’s clean energy future. It is also a testament to the hard work and dedication of our team and those of our partners. This is our 12th battery with Tesla in Australia, taking our combined capacity beyond 2 GW, and our 9th project with UGL. We are very proud of the role we continue to play in the state’s rapid transition to renewables.”
The Hon. Tom Koutsantonis MP, South Australia’s Minister for Energy and Mining, remarked: “South Australia’s FERM is fast-tracking private investment in large scale battery energy storage systems that will collectively more than double our state’s battery storage capacity. That will significantly bolster the resilience of South Australia’s energy system. Neoen has already played a leading role in South Australia’s energy transition, and its Goyder Battery project is a big part of delivering on the next chapter in our journey.”
Xavier Barbaro, Neoen’s Group CEO, concluded: “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. We are delighted to be once again demonstrating the value that batteries deliver as well as the pivotal role that they play in accelerating the energy transition in Australia and around the world.”
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