EUAA Submission: Firm Energy Reliability Mechanism – Stage 2 Consultation Paper
Emily Wood | July 14, 2025
SA is ahead of the rest of the NEM in its energy transition, and is seeing reliability and system security issues that need embedded available capacity to resolve. The FERM is a capacity market to encourage investment in storage and gas powered generation that the Energy and Climate Change Ministerial Council will consider as an option (as well as the recommendations of the Nelson Review) for roll out across the NEM.
Summary of our submission:
‘… we support the design of rules, legislation and procedures that achieve efficient, cost effective and equitable outcomes for networks, developers and consumers. In the energy sector under most circumstances, this is best achieved through a national approach and a sharp focus on the NEO (National Electricity Objectives). From our perspective, this has not been achieved by the proposed FERM described in the Consultation Paper documents.
Additionally, we are generally supportive of the concept of a capacity market alongside the current electricity-only market and recognise that due to the deep penetration of variable renewable energy resources that SA requires a capacity market ahead of the rest of the NEM. However we will only support capacity markets where it can be demonstrated they will lead to the NEM improving its ability to meet the NEO, i.e. lower costs, higher efficiency, higher reliability etc…’
Please download attached document to read our full submission.
