Neoen has announced it will double the size of its Goyder Battery project in South Australia's Mid North region after being awarded two 15-year capacity service contracts under the state's inaugural Firm Energy Reliability Mechanism tender, pushing the French renewable energy company's total Australian battery storage capacity past 9 gigawatt-hours.

Two Contracts, Two Stages

The contracts, administered by AusEnergy Services Limited, each cover 75 MW of eight-hour capacity services and will be delivered by Stages 1 and 2 of the Goyder Battery project. Combined, the two stages will form a 454 MW / 1,814 MWh facility located on the land of the First Peoples of the River Murray and Mallee Region.

Under the terms of the Firm Energy Reliability Mechanism, committed capacity must be available to dispatch continuously for eight hours when required in order to maintain the balance between supply and demand in South Australia's electricity system. The 15-year duration of both contracts signals a substantial long-term commitment by the state government to large-scale battery storage as a reliability tool.

Neoen (renewable energy company) issued notices to proceed for Stage 1, rated at 227 MW / 907 MWh, to battery storage supplier Tesla and balance of plant contractor UGL, a member of the CIMIC Group, in December 2025. The company has now executed contracts with both firms for an equally sized Stage 2, bringing the full project to its 454 MW total.

Tesla Megablock Technology and Construction Timeline

Goyder Battery will connect to ElectraNet's Bundey substation and is described as one of the first projects in Australia to deploy Tesla's new Megablock technology. Site works are scheduled to commence in August 2026, with the asset expected to begin operating in 2028.

The project forms part of Neoen's broader Goyder Renewables Zone, a flagship renewable energy hub in South Australia's Mid North that also includes the Goyder South and Goyder North wind farms.

Neoen's Regional CEO for Australia Pacific, Jean-Christophe Cheylus, noted the pace at which the two stages had been progressed. "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," he said.

He described Goyder Battery as Neoen's twelfth battery project with Tesla in Australia, taking the combined capacity of that partnership beyond 2 GW, and its ninth project with UGL.

Jobs and Community Benefits

Neoen states that Goyder Battery will create more than 150 jobs at peak construction and at least 12 permanent roles during its operational phase. The company says the project will deliver benefits to First Nations communities and the local environment, and will contribute funds to Neoen's existing community benefit-sharing program for the Goyder Renewables Zone, which the company describes as supporting a wide range of near-term and legacy initiatives across the region.

South Australia's Reliability Mechanism Takes Shape

South Australia's Minister for Energy and Mining, the Hon. Tom Koutsantonis MP, said the Firm Energy Reliability Mechanism was designed to fast-track private investment in large-scale battery energy storage systems, and that the contracted projects would collectively more than double the state's existing battery storage capacity.

"That will significantly bolster the resilience of South Australia's energy system," Koutsantonis said. "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."

The FERM tender represents the state government's first structured procurement round specifically aimed at firm, dispatchable battery capacity, and Neoen's two contract awards position it as a significant beneficiary of the inaugural round.

Neoen's Australian and Global Storage Position

With the addition of Goyder Battery, Neoen Australia's total storage capacity now stands at 2.7 GW / 9.1 GWh in operation or under construction. The company describes this as cementing its position as Australia's leading battery owner and operator.

At a global level, Neoen Group CEO Xavier Barbaro pointed to the company's history in South Australia as context for the announcement. "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," he said.

That reference is to the Hornsdale Power Reserve, the large-scale lithium-ion battery project Neoen commissioned in South Australia in 2017, which was widely recognised at the time as the largest battery storage installation in the world. The Goyder Battery announcement marks the company's continued expansion in the same state nearly a decade later.

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