The Firm Energy Reliability Mechanisms (FERM) is a scheme to ensure secure, reliable and affordable electricity supply, though ensuring there is sufficient long duration firm capacity to meet South Australia's needs.
Long duration firm capacity are types of generation or storage that can supply electricity for more than eight hours continuously. A network of renewable energy generators, supported by long duration firm capacity when required, remains the best path forward to achieving secure, reliable and cost-effective power for South Australia.
South Australia is internationally recognised as a leader in the transition to net zero emissions, particularly in the electricity sector. While this transformation will deliver significant environmental and social benefits, it also presents challenges for the state's electricity system as it balances the withdrawal of fossil-fuel generation and the introduction of long duration firm renewable capacity.
The Department for Energy and Mining developed a scheme concept throughout 2024, publicly consulting on a draft scheme design in November and December 2024. You can read more about the concept design phase (Stage One) consultation on our website.
The Department revised the design based on stakeholder feedback and in June and July 2025 consulted on a refined scheme design and draft scheme regulations and other materials. The consultation materials and the submissions received from stakeholders are available on our website: FERM Stage two consultation
The FERM is predominantly a scheme to encourage investment in new long duration firm capacity assets in South Australia through a competitive tender. Refer to the Tendering page for information about eligibility requirements and tender processes.
