EXECUTIVE SUMMARY
South Australia awarded Neoen two 15-year capacity contracts under its inaugural Firm Energy Reliability Mechanism (FERM), enabling the developer to double the Goyder Battery project to 454 MW / 1,814 MWh and expand long-duration battery storage capacity supporting the state's electricity network.
News Synopsis
France-headquartered Neoen, an independent renewable energy developer and producer, develops, owns and operates utility-scale solar, wind and battery energy storage projects across multiple international markets. The company has been awarded two 15-year capacity service contracts in South Australia's inaugural Firm Energy Reliability Mechanism (FERM) tender, enabling it to expand the Goyder Battery project to a total capacity of 454 MW / 1,814 MWh.
The two 75 MW / eight-hour capacity contracts will be delivered through Stages 1 and 2 of the Goyder Battery, located in South Australia's Mid North. The battery project forms part of the Goyder Renewables Zone, which also includes the Goyder South and Goyder North wind farms. Under the FERM programme, the contracted capacity must be available to dispatch continuously for up to eight hours when required to help maintain the balance between electricity supply and demand.
Neoen issued 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. Following the latest contract awards, the company has now executed contracts with both partners for an equally sized Stage 2 (227 MW / 907 MWh), doubling the overall capacity of the Goyder Battery.
The battery system will connect to ElectraNet's Bundey substation and will be among the first projects in Australia to deploy Tesla's Megablock battery storage technology. Site works are scheduled to begin in August 2026, and the project is expected to commence operations in 2028.
Construction of the project is expected to create more than 150 jobs, while at least 12 permanent operational roles will be established once the battery enters service. The project will also contribute to Neoen's community benefit-sharing programme supporting local initiatives and First Nations communities in the region.
With the addition of the second stage, Neoen's Australian battery storage portfolio reaches 2.7 GW / 9.1 GWh in operation or under construction. Globally, the company reported battery storage capacity exceeding 10 GWh in operation or under construction.
Jean-Christophe Cheylus, Neoen's Regional CEO for Australia Pacific, said: "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."
Xavier Barbaro, Neoen's Group CEO, 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. 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."