In November 2024, the Department of Energy and Mining (South Australia) released a consultation paper on its proposed Firm Energy Reliability Mechanism.
The mechanism would introduce a tender process for new and existing generation with 8 hours of dispatchable capacity. Government bodies would set objectives including a Firm Energy Target, and successful applications would be granted “cap-and-collar” contracts to provide revenue certainty while creating competitive tension.
The AER made a submission on 20 December 2024.