Tesla Virtual Power Plant in SA

A Tesla Virtual Power Plant will be built in South Australia, comprising of 50,000 home solar and battery systems state-wide. The deal between the South Australian Government and Elon Musk’s Tesla was announced last week by Premier Jay Weatherill ahead of the SA March state election. 

The SA government have pledged to do their part in the implementation of the virtual power plant scheme with a $2 million grant and a $30 million loan from the state Renewable Technology Fund.

Tesla Virtual Power Plant

According to Premier Weatherill, a trial of the scheme has already begun in Housing Trust properties, with 100 properties to receive their systems by EOFY (June 30), and another 1,000 in FY 18/19. After the trial is complete another 24,000 Housing Trust properties will receive the systems. 

Since there’s no word yet on the Tesla Powerwall 3 release date, they’ll use the Powerwall 2 batteries which have a 13.5kWh size. 5kW solar arrays will also be used for the 50,000 homes included in the virtual power plant. No word yet on the specifics of the solar panels the arrays will consist of but we’ll bring you that information as it becomes available.

Tesla Virtual Power Plant - Powerwall 2 Solar Battery
Tesla Virtual Power Plant – Powerwall 2 Solar Battery (source: tesla.com)

A statement from Tesla was released: 

“When the South Australian Government invited submissions for innovation in renewables and storage, Tesla’s proposal to create a virtual power plant with 250 megawatts of solar energy and 650 megawatt hours of battery storage was successful. A virtual power plant utilises Tesla Powerwall batteries to store energy collectively from thousands of homes with solar panels. At key moments, the virtual power plant could provide as much capacity as a large gas turbine or coal power plant.”

Danny Price of Frontier Economics discussed the program with the ABC:

“The biggest saving for consumers is that they don’t have to pay for as much network cost to deliver power to them because they’re generating their own power,” Price said.

Zoe Bettison, the Minister for Social Housing, discussed the reason they are installing these solar + storage systems in Housing Trust properties:

“We know that people in social housing can often struggle meeting their everyday needs and this initiative will take some pressure off their household budget,” she said.

A mammoth deal and step forward for South Australian solar – we’ll bring you more information as it becomes available!

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Tesla Battery in SA Earns $1m in a few days.

The Tesla Battery in SA has earned an estimated $1m in the last few days due to warm temperatures and a very volatile electricity market. Since being announced in July of last year and completed in November, the battery has already withstood a test last December when the Loy Yang Power Station (sector A3) tripped and went offline – the battery was able to send 100MW to the grid in 140ms, despite being almost 1000km away. It’s now proving its value again during a hot Australian summer where it was paid up to $1000/MWh to charge itself last week, according to Electrek and RenewEconomy.

Tesla Battery in SA Earnings

Tesla Battery in SA Earns $1m in a few days
Tesla Battery in SA Earns $1m in a few days (source: reneweconomy.com.au)

The 100MW/129MWh Tesla Powerpack system installed in South Australia (which is known to the grid as the Hornsdale Power Reserve) was built by Tesla and is operated by Neoen -who have access to about 30MW/90MWh of the battery’s capacity to trade on the wholesale market. The South Australian government have access to the remaining electricity to help stabilise the grid. 

As we saw with its 140ms response time, the Powerpack is able to offer energy to the wholesale market a lot faster than its rivals – allowing Neoen to profit from the large swings in energy prices in Australia (which become even more intense when we have a heatwave or there’s an outage at any of our major plants). 

Elektrek are reporting that during certain peak periods, Neoen were able to sell energy at up to $14,000 per MWh, according to forecasts from RenewEconomy on the 23rd. 

A couple of weeks ago Tesla was chosen to build another Powerpack battery in Bulgana, and the company fronted by the charismatic Elon Musk is also working in conjunction with Neoen to bid for even larger battery projects – so hopefully the good results the battery in SA has been delivering will bode well for the future. 

 

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SA Water aim for zero net electricity by 2020

As part of their ongoing goal of achieving zero net electricity usage by 2020, SA Water installed 100kW of solar photovoltaic (PV) and a 50kWh battery storage system in late December and expect the system to be commissioned in January. They also announced that they will spend $10 million on 6MW of rooftop solar PV across their operations, with the first installations expected to begin in the Q1 2019. 

SA Water 

Their $500,000 pilot 100kW solar 50kWh battery storage project is currently being finalised at the SA Water Crystal Brook workshop – and should be live this month. They’re planning on cutting their bill from $55 million for last financial year to $0 in 2020 by installing up to 6MW of solar panels across its myriad metropolitan sites. 

“We’ve already been reducing our electricity costs by more than $3 million a year since 2013, so we know that with a concerted push, our goal is ambitious, but within reach,” CEO Roch Cheroux told One Step Off the Grid via email.

“By increasing our renewable energy generation and storage, driving energy efficiencies and making smart decisions around our electricity usage and procurement, we aim to reduce our net electricity costs from $55 million in 2016/17 to $0 in 2020,” Mr Cheroux continued.

SA Water serves 1.6 million people across South Australia and is one of the single largest electricity users in the whole state, so for them to aim to be energy neutral by 2020 is a massive undertaking and will be a fantastic step forward for renewable energy in South Australia, which is already paving the way for the other states. 

According to RenewEconomy, pilot programs earmarked for the future include floating solar, silicon thermal storage, and flywheel mechanical battery storage systems. 

SA Water - Silicon Thermal Energy Storage Trial
SA Water – Silicon Thermal Energy Storage Trial at Glenelg Wastewater Treatment Plant (source: SA Water Facebook Page)

“As there is very little experience in the market of a large utility such as SA Water using a combination of battery and solar storage across multiple sites, it’s important to verify the financial benefits and increase our understanding of its capabilities”, Mr Cheroux told a press conference – you can watch it below. 

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Loy Yang Power Station & Tesla’s Battery

South Australia’s Tesla solar battery was put to the test yesterday and it performed admirably – delivering its full 100MW of power to the grid in 140 milliseconds as the Loy Yang Power station tripped and went offline late last week. 

According to Energy Minister Tom Koutsantonis, the battery, which has only been live for less than a month, tripped 140ms after the Loy Yang A3 went offline. This resulted in an immediate loss of 560MW and the Tesla battery (also known as the Hornsdale Power Reserve), reacted immediately, despite being almost 1000km away. 

The AFR quoted Koutsantonis via an interview on 5AA radio last Wednesday: 

“That’s a record and the national operators were shocked at how quickly and efficiently the battery was able to deliver this type of energy into the market,” Mr Koutsantonis said. 

He also noted the rapid speed in comparison to the existing emergency generators:

“Now if we got a call to turn on our emergency generators it would take us 10 to 15 minutes to get them fired up and operating which is a record time compared to other generators,” 

Loy Yang Power Station

Loy Yang Power Station
Loy Yang Power Station (source:tripadvisor.com.au)

With the closure of the 1600MW Hazelwood dirty coal power station earlier this year, the Loy Yang Power station in Traralgon has been doing some heavy lifting. 

Technically it’s split into to sections, Loy Yang A and Loy Yang B. If you count them as one station it’s the largest power station in Australia, generating over 3000MW of power.

Loy Yang A was bought by AGL Energy in 2012, and Loy Yang B was sold by Engie and Mitsui to Alinta for $1 billion last month. 

It’s a base load supply station and produces about a third of Victoria’s energy requirements. 

As such the 100MW the Tesla was able to provide is a drop in the bucket if there was to be a major issue affecting the whole station, but it’s a step in the right direction and amazing to see how well the solution works in a ‘real-world’ situation.

Bring on another 500MW of lithium-ion baseload power! 

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Tesla Battery in South Australia completed.

Elon Musk’s 100MW Tesla Battery in South Australia has been completed – well ahead of its December 1 operation deadline. The array of Tesla Powerpack batteries will be tested over the coming days and we can expect the system to be fully live by next Friday.

Tesla Battery in South Australia 

Tesla Battery in South Australia
Tesla Battery in South Australia (source: Tesla)

The Tesla South Australia battery partnership was first inked back in July when Musk partnered with Neoen and signed an agreement with the South Australian government to create the world’s largest lithium-ion battery. The battery farm is powered by Neoen’s 315MW Hornsdale wind farm and is located adjacent to it in Jamestown, about 200 kilometres north of Adelaide. 

The $50 million system is capable of outputting 129MWh and can be used as baseline power during summer peak loading periods, where it can provide enough energy to power 30,000 homes for eight hours, or 60,000 for four. While this might not seem like a lot and one wonders if another company could have done it for cheaper (91 groups bid for the project), it’s definitely been a great way to raise awareness of energy storage in Australia and its rapidly rising uptake (and rapidly decreasing cost). 

It’s important to note that the Tesla battery is far from a panacea for South Australia’s energy woes – as Tony Wood, the energy program director at the Grattan Institute, told the Sydney Morning Herald:

“Over time, storage can help put downward pressure on prices because it can flatten out peak demand,” Wood said.

“It’s a very useful step in the right direction … but it doesn’t solve South Australia’s problem, even at that scale.”

In the meantime, Tesla continues to burn through cash at the rate of $8,000 USD / minute as they struggle to get on top of the Model 3 rollout. What does this mean for the Powerwall 3? The next 12 months will be extremely interesting for Elon Musk and his ‘blue sky’ investors – we hope they’re able to get all their ducks in a row and Musk can start making Tesla more cashflow positive. 

In the meantime, let’s see how Tesla’s battery works over summer for South Australia! 

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