This week, through a competitive bidding process, Tesla was selected to provide a 100 MW/129 MWh Powerpack system to be paired with global renewable energy provider Neoen’s Hornsdale Wind Farm near Jamestown, South Australia. Tesla was awarded the entire energy storage system component of the project.
Tesla founder and CEO Elon Musk has praised the South Australian government for having the “gumption” to commission what will be the world’s largest lithium-ion battery storage plant, and setting an example for the “rest of the world” of what can be done – indeed, what must be done – to support high renewable energy grids.
Musk said that the project – which was effectively three times bigger than the world’s biggest lithium-ion battery system – was not without risk, particularly in light of the US company’s promise to have the Jamestown plant up and running within 100 days, or do the job for free.
But he added that if “South Australia was up to the challenge, if South Australia is willing to take a big risk, then so are we.”
“Actually, I’m pretty darn impressed with South Australia,” Musk told reporters at the Friday afternoon news conference. “It takes a lot of gumption, so obviously, huge respect for that.
“We see this as something the world will look at as an example. It’s going to be an example to the rest of the world. But we need to deliver. And we want to do it in under 100 days."
“This is definitely the way of the future, and it’s worth other states (in Australia) taking a look at this.”
Tesla Powerpack will charge using renewable energy from the Hornsdale Wind Farm and then deliver electricity during peak hours to help maintain the reliable operation of South Australia's electrical infrastructure. The Tesla Powerpack system will further transform the state’s movement towards renewable energy and see an advancement of a resilient and modern grid.
Upon completion by December 2017, this system will be the largest lithium-ion battery storage project in the world and will provide enough power for more than 30,000 homes, approximately equal to the amount of homes that lost power during the blackout period.
Costs have not been made public, yet on twitter we can see:
The first stage of the project, consisting of 32 turbines with a capacity of 102 MW, commenced operation in July 2016. Financing for the second 100MW stage was secured in June 2016.
The project’s developers are French company Neoen, Australian partner Megawatt Capital and infrastructure investor John Laing. It has also twice been awarded a 20-year contract to supply green energy to the ACT, with the second stage achieving a record low price of $77 per MWh.
Update 12/5/2018: SA battery saves $35 Million in 4 months (cost $50M)
Update 12/5/2018: SA battery saves $35 Million in 4 months (cost $50M)
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