Tesla Battery Power in Victoria – Powerpack

Tesla Battery Power in Victoria will be installed in regional Victoria this year, in time for the 2018/19 summer. The Turnbull government has committed up to $25m to Victoria’s first foray into large-scale, grid-connected batteries.

Tesla Battery Power in Victoria

Tesla Battery Power in Victoria - Tesla Powerpack
Tesla Battery Power in Victoria – Tesla Powerpack (source: tesla.com)

The Age is reporting that ARENA (the Australian Renewable Energy Agency) and the Turnbull government will contribute $25m to the $50m project, which will be located in Western Victoria. The area has been identified as having a ‘vulnerable’ energy transmission network and will benefit immensely from the project. The other $25m of funding will come from a consoria led by Spotless Sustainability Services, according to PV Tech.

The batteries will, similar to the South Australia Tesla battery plant, use Tesla’s lithium ion Powerpacks, but in slightly different configurations and with separate manufacturers. 

There will be two separate batteries – 

  1. A 25MW/50MWh Powerpack solar battery in Kerrang, supplied by Tesla, owned by Edify Energy and Wirsol, and connected to the Gannawarra solar farm in north-west Victoria.
  2. A 30MW/30MWh grid-connected Powerpack in Ballarat, supplied by global energy storage giant Fluence (a conglomeration of Siemens and AES), owned by AusNet and and built at a nearby station in Warrenheip. 

Both batteries will be operated by EnergyAustralia and a PPA (power purchase agreement) has already been signed. 

“ARENA is excited to be demonstrating the capabilities that these new batteries will provide in securing reliable electricity for western Victoria and to facilitate the Victoria’s transition to renewable energy,” ARENA’s Ivor Frischknecht said in a statement.

Victoria has a RET (renewable energy target) of 25% by 2020 and 40% by 2025. 

Minister Josh Frydenberg said: “Storage has been the missing piece of the energy jigsaw for a long time. Whether it’s Snowy 2.0 in New South Wales and Victoria, the Battery of the Nation projects in Tasmania or various initiatives, including a 30MW battery, in South Australia, we are expanding, exploring and funding energy storage right across the country.”

Back in January we wrote about the Bulgana Green Power Hub – a 194MW wind farm and a 20MW / 35MWh battery storage facility which will be built by French renewable energy developer Neoen separately to the Gannawarra solar farm Tesla battery or the Ballarat terminal station Powerpack. So there’s plenty on the horizon for energy storage in Victoria – it’ll be great to see how this affects some of the weaker parts of regional Victoria as it’s already had a fantastic effect in South Australia. 

 

SA Tesla Battery Plan – Election Fallout

The future of the SA Tesla Battery plan brokered between Elon Musk’s Tesla and Jay Weatherill’s is on unstable footing after the results of Saturday’s state election in South Australia, seeing Weatherill’s party defeated by the Liberals. But will it make much of a difference? How will the new party serve SA’s rapidly growing renewable energy industry?

SA Tesla Battery Plan
SA Tesla Battery Plan Future? Jay Weatherill and Elon Musk in happier times (source: SA Labor Facebook)

SA Tesla Battery Plan – What Now?

The incumbent Labor party, headed up by Jay Weatherill, lost to the Liberal party on Saturday night after 16 years of rule in South Australia. The new premier is Steven Marshall who seems quite keen on continuing the Labor party’s work on growing renewable energy in the state.

ABC Radio National Breakfast’s Fran Kelly asked Marshall about the plan to equip housing trust properties with Tesla Powerwall 2 batteries, and Mr Marshall said: “That’s not part of our agenda. Our agenda is 40,000 homes.” However, when pressed about the specifics at a later date, Marshall was a (little) more clear on the Liberals’ plans:

“We don’t know where that is but any contracts the [previous] government’s entered into — we’ll be honouring them, there’s no doubt about that. Any other items that they flagged during the election, we’re happy to look at it but we’ve got our own energy policy agenda and we’ll be rolling that out as a priority.”

We wrote earlier this year about the South Australian solar loan program which both parties had different versions of a renewable energy push for the state – Labor were offering $100m for solar loans in South Australia. Up to 10,000 South Australian homeowners could access up to $10,000 for loans for solar panels, batteries, or both – with the loans interest free for the first 7  years. There was talk of the solar batteries offered in this scheme to be 100% manufactured by Tesla. 

In contrast Steve Marshall’s Liberals had the same amount of expenditure – on a bigger scale, with a smaller amount per household – their $100m plan was to provide grants of $2,500 per household for 40,000 dwellings. Mr Marshall argued at the time that 10,000 households was not enough to ‘shift the dial’, speaking about the rapidly increasing cost of electricity. The Liberals haven’t mentioned Tesla specifically and Marshall doesn’t have the same close relationship as Weatherill had with the enigmatic Elon Musk – but that doesn’t necessarily mean anything. Marshall is clearly keen to move forwards on renewable energy and whether he chooses Tesla or one of the Powerwall 2 alternatives as their energy storage battery of choice may not matter so much.

We’ll keep a close eye on how the Marshall government moves forwards with the SA renewable energy initiatives and keep reporting in! 

 

 

Electrolux Solar & Battery Storage at Dudley Park

Electrolux solar – the home products giant have applied to ECOSA to build a solar pv + battery storage facility at Dudley Park – their ‘cooking division’. The application, launched by Atul Badgujar on February 12, is for a 2MW solar system on site and a .5MW battery storage system. It adds to the large amount of private solar investment we’ve been seeing recently and will add to existing solar panels that Electrolux have installed.

The Electrolux solar installation

Electrolux Solar Installation at Dudley Park
Electrolux Solar Installation at Dudley Park (source: ECOSA.SA.Gov.Au)

According to the application, 65% of the solar PV generation will be used onsite and 35% will be used to charge the battery and for potential grid export. The plant will be built over multiple buildings in three generating units over 5 stages, adding to an existing 360kW of solar Electrolux have already got installed. 

The .5MW batter will be mainly used for peak shaving (reducing the amount of energy purchased from the utility company during peak demand hours) and reducing the site kVA demand. 

Private Solar Investment in Australia

There’s been a lot of commercial solar investment in Australia over the past 12 months. Earlier this week we reported on the Sydney Markets’ $8.9m, 3MW solar power system.

According to an article we wrote last year based on figures from Warwick Johnston at SunWizCommercial Solar in South Australia also rose 84% in 2017.

“System prices have fallen significantly … since the feed-in tariff-driven boom,” he said. “So people are really taking this up just for the underlying business case rather than trying to rush in to secure some government subsidy, which isn’t needed any more.” 

Some other private investments we’ve seen come up recently include:

“Electrolyser” Hydrogen Superhub at Crystal Brook

A $25m ‘Hydrogen Superhub’ will be built by French renewable giant Neoen in Crystal Brook, South Australia. The state government has committed $25m in grants and loans to Neoen to finalise plans and commence construction on the superhub. It still requires development approvals but looks like the project will go ahead. This would be the largest hydrogen plant in the world. 

Hydrogen Superhub at Crystal Brook

Hydrogen Superhub at Crystal Brook
Hydrogen Superhub –
a hydrogen atom with size of central proton shown (source: wikipedia.org)

The 50MW electrolyser facility on wind and solar farm at Crystal Brook would produce up to 400MW of solar and wind power each day, which would then be used to power the hydrogen electrolyser which would create up to 20,000kg of hydrogen daily, according to the ABC.

Tom Koutsantonis, the South Australian Energy Minister discussed SA’s plans with regards to hydrogen production and potential export:

“Our Hydrogen Roadmap has laid the groundwork for South Australia to become a world leader in the emerging hydrogen production industry, and to benefit from the economic opportunities likely to flow from it,” he said.

“More renewable energy means cheaper power, and I’m pleased the State Government can partner with Neoen to once again develop a world-leading renewable energy and storage project following the construction of the Tesla battery at Jamestown.”

MD of Neoen’s operations in Australia, Franck Woitiez, discussed the possibility of exporting the hydrogen intrastate and even into different countries:

“It has the potential to reach beyond our electricity grids, and supply South Australia’s locally produced clean energy to other states and to our nearby trading partners,” he said.

The Flinders News report that the Hydrogen Superhub will create 260 construction jobs, 40 ongoing positions and at least $600 million in Neoen investments. They also note that the Renewable Technology Fund have given grants to three other hydrogen projects:

 

 

General Motors Holden Site – 2MW, 500kWh BESS

Carnegie Clean Energy reported earlier this week that they have secured $3 million in government funding to build a 2MW, 500 kWh Battery Energy Storage System (BESS) at the General Motors Holden site in Elizabeth, South Australia. The funding will come from the Renewable Technology Fund, part of the South Australian Government’s Energy Plan.

Solar microgrid at the General Motors Holden Site 

General Motors Holden Site - Carnegie Battery Energy Storage System Example
General Motors Holden Site – Carnegie Battery Energy Storage System Example (source: carnegiece.com)

The site will provide grid-support services during peak times and, according to Infrastructure Magazine, will operate in tandem with the existing diesel backup generators at Elizabeth. 

Premier of South Australia Jay Weatherill said “This solar and battery project by Carnegie is part of a wave of new investment in South Australia we have leveraged through the $150 million Renewable Technology Fund announced as part of our energy plan.

“Renewable energy projects like this also reduce demand on the grid during peak times, which puts downward pressure on power prices for all South Australians. This project is symbolic of the broader transition we are seeing in our economy away from traditional manufacturing towards high-tech industries creating jobs of the future for South Australians” Weatherill added.

Carnegie’s Managing Director, Dr Michael Ottaviano, said, “We are fielding an increasing number of opportunities that historically were performed by diesel or gas turbines, for which battery systems are now increasingly competitive. The CCE battery solution offers faster response time, lower operating cost, no greenhouse gas pollution, and silent operation. This is Carnegie’s first project in South Australia and means we are now delivering projects right across Australia.”

According to Dr Ottoviano the company will cover approximately 20% of the plant’s roof space initially, but there is no reason they couldn’t end up using the other 80% as well: 

“It’s a way of looking at what formerly would have been just a roof and turning it into an energy production asset,” he said in news.com.au

South Australian Energy Minister Tom Koutsantonis discussed the effect it and other renewable investments are having on the job market: 

“Jobs are our number one priority and this solar battery project by Carnegie is part of a wave of new investment,” he said.

There have been many exciting developments for South Australian solar over the past 12 months and it’s great to see them keep coming. 

The microgrid is expected to commence operation by December. 

sonnen in South Australia – HQ, manufacturing plant.

sonnen in South Australia – the German battery manufacturing giant (which is also the world’s largest home storage energy company) have announced that they’re going to move their Australian headquarters from Sydney to Adelaide. The announcement was made last week during a huge week for renewables in SA – with the upcoming election both major parties have promised $100m in solar loans for South Australian residents.  

sonnen in South Australia

Along with the administrative tasks (i.e. the ‘headquarters’) of sonnen’s Australian operations, they’ll also be setting up a full energy storage manufacturing facility in the state.

Chris Parratt, the Australian boss of sonnen’s Australasian business, said the company will have a solar battery manufacturing facility ‘up and running’ in Adelaide within six to nine months.  According to the Australian Financial Review, Parratt says the facility will be able to produce 10,000 systems a year, including sonnen’s flagship sonnenBatterie line. He noted that they are looking at four separate locations in Adelaide, including the former Holden car manufacturing site and the former Mitsubishi car-making factory in Tonsley Park precinct. 

sonnen in South Australia
sonnen in South Australia – sonnenBatterie eco 8.2 (source: sonnen.com.au)

Parratt noted that sonnen have set up a similar facility in Atlanta in the United States of America in a fast timeline last year telling a press conference (along with South Australian Premier Jay Weatherill) that they’re confident in scope management:

“We believe in about six to nine months we’ll be producing our first energy storage system,” he said. 

sonnen already have 30,000 household batteries installed in Germany, making them the world’s largest home storage energy company. 

It looks like this will go ahead regardless of whether Weatherill’s incumbent party or the South Australian Liberal leader Steven Marshall wrests control of the state – the latter is against renewable energy targets but has also committed to a $100m means-tested subsidy for up to 40,000 households to get interest free solar loans. 

Weatherill was quick to extol the employment ramifications of the move, having been told he was “doubling down to chase his losses” by federal energy minister Josh Frydenberg last week with regards to raising the RET from 50% to 75%:

“We saw yesterday I was accused of being a problem gambler. Well today, South Australia has hit the jobs jackpot,” Mr Weatherill said, referring to Sonnen’s plans, which will create 130 new immediate jobs, rising to 190 by the end of the year, and then another 300 jobs for trades people to install the batteries.

It’s shaping up to be a very interesting election in South Australia. Who are you voting for, and why? Let us know in the comments. 

 
 

Solar loans in South Australia, sonnen to move HQ

Premier Jay Weatherill has announced $100m for solar loans in South Australia. Up to 10,000 South Australian homeowners will be able to access up to $10,000 for loans for solar panels, batteries, or both. The loans will be interest free for the first 7  years. At the same time, German company sonnen has announced it will relocate its Australian headquarters from Sydney to Adelaide – we’ll report more on that next week. 

Solar Loans in South Australia

Solar Loans in South Australia
Solar Loans in South Australia (source: Jeremy Buckingham via Wikipedia)

Yesterday the Labor party made the announcement that they will offer these solar loans for private homes – with Premier Weatherill discussing the ramifications of the plan in a press conference:

“It’s going to slash bills, we’ve already seen that with our virtual power station, modelling demonstrates a 30 per cent reduction in energy power,” he said.

“We’ve seen from the national regulator that renewable energy projects are projected to reduce energy bills by $300 over the next two years, so it’s just beginning to happen.”

The Liberal party already announced a very similar policy last October so it looks like there’ll be a good result for renewables no matter who wins – it’s a little surprising to see Premier Weatherill offer something so similar when he has been such a champion of renewable energy for so long. Regardless, it’s a great scheme and one which will have a good result either way – South Australia continues to lead the charges with regards to renewables in Australia.

According to the ABC, opposition leader Steven Marshall said their $100m plan was to provide grants of $2,500 per household for 40,000 dwellings – so less money, but for more properties. Mr Marshall argued that 10,000 households was not enough to ‘shift the dial’ with regards to ballooning energy prices:

“The reality is 10,000 is not going to shift the dial in South Australia in terms of prices, unlike the Liberal Party which has put our policy up for independent scrutiny and we know that prices will come down under the Liberal Party’s energy policy,” Mr Marshall said.

“We’ve put our plan out for independent evaluation.

“Labor still hasn’t provided any indication whether this is going to bring down energy prices in South Australia for any more than just the 10,000 people it’s talking about.”

Back in October last year the Liberal party said their plan will save $300 per household per annum, but later admitted their modelling was inaccurate and the savings will be around $70 and won’t start until 2022. To achieve that figure of $300 a $500m-$700m interconnecter to New South Wales would need to be connected by 2021.

No word on specific savings with regards to Labor’s plan so for the time being voters will need to decide whether $2,500 for 40,000 houses or $10,000 for 10,000 houses is going to have a better effect on energy prices and stability. No doubt we’ll have more information on this as election time draws nearer! 

 

Renewable Energy Storage Target for South Australia

South Australian premier Jay Weatherill is on the campaign trail at the moment – promising to introduce Australia’s first renewable energy storage target (which the state will subsidise) and also upping the current state-based 2025 renewable energy target from 50% to 75% (given they’re already at 48.9%).

Renewable Energy Storage Target

Jay Weatherill - Renewable Energy Storage Target for South Australia
Jay Weatherill – Renewable Energy Storage Target for South Australia (source: @jayweatherill on Twitter)

Weatherill was at an election forum which was about the environment on Tuesday (the 20th) and said the South Australian state election to be held on March 17 will be primarily focused on renewable energy – a ‘referendum on renewables’ of sorts: 

“If we go down, they will be wagging their fingers at everybody around the nation, to say that’s what happens if you push too hard into renewable energy,” Weatherill said. “That’s what the prime minister is trying to do and that’s what is going to happen.”

He has promised to lift the renewable energy target to 75% and implement a renewable energy storage target which would be 25% of SA’s peak demand – approximately 750MW of storage. The government would help the private sector meet this target through subsidy arrangements. 

Weatherill discussed his party’s policy further with Guardian Australia, noting that South Australia are happy to continue ‘going it alone’ if they’re not going to get any help from the Turnbull government:

“It’s a rejection of the federal government’s approach – and the state Liberal party’s approach,” Weatherill said. “We’re not interested in putting our leadership in renewable energy in the hands of people that don’t believe in a renewable energy future.”

Carnegie Clean Energy reported yesterday that they have secured $3 million in government funding to build a 2MW, 500 kWh Battery Energy Storage System (BESS) at the General Motors Holden site in Elizabeth, South Australia. With the rapidly decreasing cost of large-scale energy storage, it seems that the Renewable Energy Storage target shouldn’t be too much of a problem and will be a massive help to baseline power and will also assist in reducing the blackouts which plagued the country in 2016.

“This solar and battery project by Carnegie is part of a wave of new investment in South Australia we have leveraged through the $150m Renewable Technology Fund announced as part of our energy plan,” Weatherill said at the time.

In further news, Weatherill has today announced that South Australian households will be able to apply for a $10,000 loan to cover the cost of installing solar panels and battery storage – which we’ll cover tomorrow. 

 

Tailem Bend solar farm reaches financial close.

The 127MW Tailem Bend solar project will begin construction later this month. A financial close has been achieved by Singapore energy company Equis Energy and a 22 year purchase power agreement (PPA) has already been signed with Snowy Hydro. There are now plans in the pipeline to create Tailem Bend 2.

Tailem Bend Solar Project

Tailem Bend Solar Farm
Tailem Bend Solar Farm (source: http://equisenergy.com/newsroom/)

The $200m project is 100km south-east of Adelaide and will begin construction in February, according to Equis.

The Australian Financial Review noted that there were initial plans for a 28.8MW diesel generator to support the solar farm, but these were scuppered by the Australian Energy Market Operator who placed “unreasonable technical demands” on the project.  

Equis, who are also planning on building a 1000MW project in Queensland’s part of the Surat Basin (the Wandoan solar farm), said they have a huge amount of projects in the pipeline:

“Australia represents one of the most exciting solar power generation markets globally and Equis expects to build over $1 billion of new projects over the next 24-36 months,” director David Russell said in the press release. 

“As Asia’s largest renewable energy developer, Equis is able to leverage its economies of scale to deliver large scale, low-cost, reliable renewable energy, which Australia needs, as well as providing employment opportunities and supporting economic growth in local communities.” Mr Russell continued. 

According to Deal Street Asia, the project is expected to start generating power and feeding it to the grid in the first quarter of next year. 

The Tailem Bend solar projects will generate around 413,000MWh/year, which is equivalent to 82,600 homes and will save over 200,000 tonnes of CO2 annually compared to the same generation from South Australia’s current non-renewable power plants. 

Equis Energy are also building a  250MW DC solar photovoltaic power plant with energy storage installed in NSW’s Sunraysia region (the Sunraysia solar farm)

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!