Tesla scores deal to fix South Australia’s power crisis with 100MW battery system powered by wind farm

July 7, 2017

Tesla has secured a contract to install the world’s largest lithium-ion battery storage system in South Australia. Premier Jay Weatherill has announced an agreement between the State Government and California-based Tesla to install a 100-megawatt (129 megawatt hour) Powerpack system to be paired with a wind farm by global renewable energy provider Neoen’s Hornsdale.

The battery system will operate continuously and charge using renewable energy from the wind farm, and ultimately serve as back-up power in the event of energy instability from local utilities. “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.” reads the press release by Tesla.

The deal between Tesla and the South Australia first came to light in March when Tesla CEO Elon Musk committed to solving South Australia’s power crisis in 100 days through a Tesla Energy product or the system will be free.

legend! ☀️ You’re on mate. Give me 7 days to try sort out politics & funding. DM me a quote for approx 100MW cost – mates rates!

— Mike Cannon-Brookes (@mcannonbrookes) March 10, 2017

The 100MW system will be made up of approximately 640 Tesla Powerpacks (129MWh) or roughly the amount of batteries used in 1,300 Tesla Model S (or Model X) P100Ds.

In speaking about the latest deal with Tesla, South Australian premier Jay Weatherill said, “South Australia has been leading the nation in renewable energy – now we are leading the world in battery storage. I’m thrilled with the selection of Neoen and Tesla, whose experience and world-leadership in energy security and renewables will help South Australia take charge of its own energy future. Battery storage is the future of our national energy market, and the eyes of the world will be following our leadership in this space. This historic agreement does more than bring a global energy giant in Tesla to South Australia, it will also have some significant economic spin-offs.”

Tesla confirmed that the project will be finalized by December 2017. When complete, the sustainable energy system will provide enough power for more than 30,000 homes, and serve as a grid-scale energy storage system for blackout prevention.

We’ve provided the full statement by Tesla, as follows:

Tesla Powerpack to Enable Large Scale Sustainable Energy to South Australia

Last September, a 50-year storm damaged critical infrastructure in the state of South Australia, causing a state-wide blackout and leaving 1.7 million residents without electricity. Further blackouts occurred in the heat of the Australian summer in early 2017. In response, the South Australian Government as a leader in renewable energy, looked for a sustainable solution to ensure energy security for all residents, now and into the future, calling for expressions of interest to deploy grid-scale energy storage options with at least 100 megawatts (MW) of capacity.

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 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.

Working in close collaboration with the South Australian Government and Neoen, this grid scale energy storage project is not only sustainable, but will help solve power shortages, reduce intermittencies, and manage summertime peak load to improve the reliability of South Australia’s electrical infrastructure. In addition, Tesla’s Powerwall is now being installed for residential customers across Australia and ramping up quickly. The same technology that can help stabilize the South Australian grid can also be used by homeowners to collect energy during the day so it is stored and made available day and night, providing uninterrupted power even if the grid goes down.

Tesla is proud to be part of South Australia’s renewable energy future, and we expect this project will provide a model for future deployments around the world that will help significantly accelerate the adoption of sustainable energy.

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