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Australian state picks Tesla to provide grid-scale battery

By Sarah ChenAustralia
1 min read
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g.foolcdn.comeditorialimages192819hong kong first tesla large 37caca4acbc5bf4cddeb54ff3c1ebb17c80591de
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South Australia has picked Tesla to install the world’s largest grid-scale battery that would be paired with a wind farm provided by France’s Neoen, as the state battles to keep the lights on.

South Australia has raced ahead of the rest of the country in turning to wind power, triggering a shutdown of coal-fired plants that has led to outages across the eastern part of the nation, driving up energy prices.

The drawback to South Australia’s heavy reliance on renewables has been an inability to adequately store that energy, leading to vulnerabilities when the wind doesn’t blow.

Under the terms of the agreement, Tesla must deliver the 10-battery within 100 days of a contract being signed or it’s free, matching a commitment made by Tesla Chief Executive Officer Elon Musk in a Twitter post in March.

There will be a lot of people that will look at this, ‘did they get it done within 100 days? Did it work?'” Musk told reporters in South Australia’s capital city of Adelaide.

“We are going to make sure it does.”

Dozens of companies from 10 countries had expressed interest in the South Australian project, which is viewed as a major test for the reliability of large-scale renewable energy use.

Tesla said in a statement that upon completion by December 2017, the system would be the largest lithium-ion battery storage project in the world, overtaking an 80 megawatt-hour power station at Mira Loma in Ontario, Calif., also built using Tesla batteries.

Questions & Answers

Q.

What is the primary reason South Australia needs a grid-scale battery system?

A.

South Australia's heavy reliance on wind power has led to an inability to adequately store energy. This has caused vulnerabilities and outages when the wind does not blow, driving up energy prices.

Q.

Who is providing the wind farm that will be paired with Tesla's battery system?

A.

France's Neoen is providing the wind farm that will be paired with the grid-scale battery. This partnership aims to address the energy storage issues faced by South Australia.

Q.

What is the deadline for Tesla to deliver the new battery system?

A.

Tesla must deliver the 10-battery system within 100 days of the contract being signed. If this deadline is not met, the agreement stipulates that the project will be free.

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