Hornsdale Power Reserve saves $8.9m in 6months

Hornsdale Power Reserve – also known as the Tesla South Australia battery, the 129MWh solar/energy storage battery has saved the state $8.9m in six months, according to Renew Economy and their analysis of spot market pricing in 2018.

Hornsdale Power Reserve

Hornsdale Power Reserve
Hornsdale Power Reserve (source: hornsdalepowereserve.com.au)

The cost of the Hornsdale Power Reserve hasn’t been made public, but at ~$800 per installed kWh the cost comes out to around $100m (with around $50m paid by the government), which fits the whispers we’re hearing around the traps.

The partnership between Tesla and South Australia was inked in July last year as Elon Musk and then-Premier Jay Weatherill decided on Neoen’s Hornsdale wind farm as an installation spot. The Tesla Battery was then completed on November 24, ahead of its December 1 operation deadline (Musk made a bet with Weatherill/South Australia that Tesla would install the Powerpack batteries by December 1 or the project would be free).

According to an analysis undertaken by RenewEconomy and investigated further by Clean Technica, The battery saved $5.7m in its second quarter of operation. It bought power at an average price of $79/MWh and sells it at $191/MWh (a figure somewhat distorted by a very power-hungry January – with that month removed the price goes down to $141/MWh). The estimated savings for the full 2018 are expected to be around $18m. 

It’s important to note that the battery is still trading 30MW (of its total 100MW) of capacity so there is space to expand operations should the government be so inclined. 

If you’d like to read a more detailed account of how much money the Hornsdale Power Reserve has saved South Australia in 2018 click here to read Stephen Parker and Bruce Mountain of the Victoria Energy Policy Centre investigate the economics of energy generation/storage.

If you’d like to see more stats on how the HPR is going, price-wise – there’s a rolling 72 hour graph of each battery charge/discharge with spot price data available via this link.

 

 

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Tesla in Australia 2018/2019 – Facts & Figures

Tesla have announced their Q2 earnings which notes that they have a ‘crazy’ growth outlook despite cell shortage and a slow deployment of their solar roof. Tesla in Australia is still very far behind the USA, but what can we expect the future to bring?

Tesla in Australia – 2018/19

What can Australians expect from Tesla over the next financial year? We’ve had an agonisingly slow rollout down under and there are many people waiting to see how long it takes for the solar roof to make its way out here.

With the cell shortage that has crippled availability of the Tesla Powerwall 2 in Australia, is it worth waiting for the Powerwall 3 instead? There hasn’t been any announcement yet so it really depends on your personal situation. 

The Tesla Gigafactory in Buffalo, New York is in working on speeding up production of the Solar Roof. They hope to produce 1 GW of solar products at the site annually beginning in 2019, and Tesla has said that it could even reach 2 GW/year down the track. The Gigafactory produces standard solar panels, along with the Solar Roof.

So if you have a bit of patience and are happy to wait until 2019, it’s fine to wait. Solar batteries still have a bit of a ways to go before they are a no-brainer for people to install, let alone the solar roof. But in the meantime, there are certainly solar roof alternatives like the Tractile solar roof tile or the Sonnen/Bristile partnership which they’ve called ‘Solartile‘. Have you got any questions or any experience with any of these solar shingles? Please let us know in the comments. 

Where is the Tesla Solar Roof?

Tesla in Australia - Solar Roof via @Toblerhaus on Twitter
Tesla in Australia – Tesla Solar Roof 2018 Installation (California) (source: @Toblerhaus on Twitter)

We’ve written about the Tesla Solar Roof before – and we’ve also written about its place in the Australian ecosystem, given that they’re rare as hen’s teeth in America, let alone over here. According to PV Magazine USA, it’s probable that the Tesla Solar Roof will not help their bottom line (Energy Generation and Division Revenues) until halfway through 2019 at the earliest. The reasons for this are for safety and the time lag it’s taking to get all their ducks in a row.

Tesla CEO Elon Musk clarified:

“It takes a while to confirm that the Solar Roof is going to last for 30 years and all the details work out, and we’re working with first responders to make sure it’s safe in the event of a fire and that kind of thing. So it’s quite a long validation program for a roof which has got to last for 30, 40, 50 years, but we also expect to ramp that up next year at our Gigafactory 2 in Buffalo. That’s going to be super exciting.”

According to Musk ‘several hundred’ Solar Roofs have been deployed, are being installed or scheduled for install, and international expansion (i.e. Australia!) is slowly rolling out.

PV Magazine have also written about some of the first solar roof installations in the USA – please click here to read some more about them.

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Alexandra Canal transport depot solar+storage

The Alexandra Canal transport depot was officially opened by Sydney Lord mayor Clover Moore on Wednesday. It’s powered by 1,600 PV solar panels and also includes a Tesla Powerwall/Powerpack battery which has 500 kWh of energy. It represents the first time solar has been combined with large-scale energy storage in NSW – just like Tesla’s South Australia battery venture earlier this year. 

Alexandra Canal transport depot solar

Alexandra Canal transport depot  solar
Alexandra Canal transport depot solar (source: SMH.com.au / Supplied)

The Alexandra Canal transport depot will have the first government-installed Tesla battery for NSW – following suit from Victoria and South Australia who have already got similar setups. Lord mayor Moore took a look at the facility this week and had some high praise and explanation for the government’s future renewable plans:

“Growing the uptake of renewable energy is critical in combating the worst impacts of climate change,” Ms Moore said, adding:

“We’re working towards a target of 50 per cent of all electricity in the City of Sydney area to come from renewables by 2030.

“To help us achieve that target we’re covering the roofs of our properties with as many solar panels as possible. By mid-2021, we expect to have more than 7800 solar panels on the roofs of our properties. As the mix of storage and generation on our electricity grid changes, solar solutions like this could provide reliability and resilience to our electricity network and potentially prevent blackouts,”

The Tesla Powerpack batteries will be remotely managed by TransGrid and will be the first cab off the rank for a plan which will see Sydney install 1.5MW of battery storage on top of council buildings – with the goal of making their city 50% renewable in the short term. 

TransGrid boss Paul Italiano discussed the project with the Sydney Morning Herald:

“This initiative with the City of Sydney will afford the depot a significant amount of energy self-sufficiency while also sharing benefits with the wider community through the electricity network,” Mr Italiano said.

“By partnering with a site where this service is needed, we can support the City of Sydney’s renewable energy goals and reduce the cost of the council’s depot.”

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Western Downs green power hub council approval.

The Western Downs green power hub planned by French renewable giant Neoen has received council approval for a solar farm of size up to 500MW. This impressive project promises to bring  North Queensland solar jobs and continue the large-scale solar revolution in Queensland and Australia.

The Western Downs green power hub

The Western Downs green power hub
The Western Downs green power hub proposed location (source: westerndownsgreenpowerhub.com.au)

The Western Downs green power hub will be located 22km south of Chinchilla and 62km north west of Dalby, according to RenewEconomy. No word on the specifics of the gear they will use, but a huge 1500 hectares of ground mounted solar panels will feed two hectares of battery energy storage. This is going to be a gigantic undertaking.

According to the website for the green power hub, they’ll produce around 1.05MWh (million megawatt hours) per year.

“A combination of an ambitious Queensland Renewable Energy Target and a proactive government to meet those targets provide highly favourable conditions for renewable energy projects in the State,” Neoen says on the website.

“Consequently, the company will expedite the development of Western Downs Green Power Hub, as well as several other projects in Queensland.”

Construction was initially slated to commence in Q3 this year but it now looks like mid a 2019 start date will be more likely, according to the website.

“Construction is expected to start mid 2019 providing employment opportunities for the region.”

An article from the Chronicle in September last year (when it was being touted as a 250MW solar plant) noted that the consturction phase of the project will generate up to 300 solar jobs and between two to four during regular usage.

Neoen have been responsible for a number of huge projects across Australia recently:

 

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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. 

 

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Tesla Powerwall in 2018 – Availability in Australia.

What can we expect from the Tesla Powerwall in 2018? Elon Musk’s company have released their Q4 report from last year, and it also has a lot of interesting information about the direction they’re planning on taking things in 2018. It looks like the days of the severely limited supply of the Powerwall may be coming to an end. 

Tesla Energy Display - Tesla Powerwall in 2018
Tesla Energy Display – Tesla Powerwall in 2018 (source: Tesla.com)

Tesla Powerwall in 2018 – Residential Energy Storage

The Tesla Powerwall 2 has been out in Australia for almost a year now – the problem is that they have been hard to come by and Tesla have had a very difficult time meeting demand for their energy storage products (we’re not even going to delve into the Model 3 fiasco…)

“2018 will see major growth in Tesla energy storage deployments, as the production ramp of our storage products is just as steep as with Model 3,” Tesla said. “This year, we aim to deploy at least three times the storage capacity we deployed in 2017.”

They went on to elaborate on the reason Powerwalls were so difficult to source last year:

“We also deployed 87 MW of energy generation systems in Q4,
which is 20% less than Q3 2017. Solar MW deployed declined as
volumes continue to be impacted by our decision to close certain
sales channels earlier this year and to focus on projects with better
margins. In addition, solar deployments were affected by the short
supply of Powerwalls for customers who wanted solar plus
Powerwall in their house. While volumes may continue to be
impacted by these factors over the near-term, we expect growth to
resume later this year. “

This begs the question – with so many issues scaling up their energy storage how will this impact the Powerwall 3 release date announcement?

Tesla Powerpack in 2018 – Commercial Energy Storage

After the unparalleled success of the Tesla battery in South Australia, it’s unsurprising to see that they’re going to have a strong focus on commercial solar storage. 

 “Due to the success of this project, we’re seeing an increase in demand for Powerpack, our commercial energy storage product. With more electric utilities and governments around the world recognizing the reliability, environmental, and economic benefits of this product, it’s clear that there is a huge opportunity for us in large scale energy storage” their Q4 statement read. 
 
It’ll be interesting to see exactly what applications we’ll see the Powerpack being used in, both in Australia and worldwide. 

Tesla Solar Roof 2018 Update

According to the report, initial production at the Gigafactory 2 started in Q4 and Tesla are “deliberately ramping production at a gradual pace”. When “fully scaled”, the Buffalo, NY based Gigafactory 2 will be able to produce enough solar cells to add more than 150,000 new residential solar installations every year. 

If you want to learn more about the Tesla, Inc. Fourth Quarter 2017 Financial Results Q&A conference call click here to visit their site or you can find the PDF of the update letter here – Tesla Fourth Quarter & Full Year 2017 Update

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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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Bulgana Green Power Hub to add 20MW Tesla Battery

French renewable energy company Neoen has purchased the Bulgana Green Power Hub, a huge wind+battery storage facility in western Victoria. It will be receiving a Tesla battery similar to the one in South Australia, but just on a smaller scale (20MW vs 100MW). 

Bulgana Green Power Hub

According to the AFR, the 204MW wind farm and 20MW accompanying Tesla battery will entirely power the Nectar Farms crop at Stawell, in Western Victoria. The majority of energy it generates will be fed into the local grid. The Nectar Farms crop is a new 30HA high tech glasshouse facility which will supply tomatoes and other produce for import and export, contributing more than 600 jobs to the Stawell region. 

The Bulgana Green Power Hub will be Neoen’s largest Australian-based project and will create 1300 jobs during construction and 270 ongoing jobs. Neoen are joint owners of the existing 100MW Tesla South Australia solar battery. They are also the developer of the Hornsdale Wind Farm in South Australia (where the battery is located)

“The performance of the South Australian battery is outstanding,” according to Franck Woitiez, Neoen’s managing director. “The Bulgana battery is primarily going to provide energy to Nectar Farms and may support the grid in the future.”

The South Australian battery was tested late last month and performed admirably, delivering 100MW of power to the grid in 140 milliseconds as the Loy Yang Power station tripped and went offline

Lily D’Ambrosio, Victoria’s energy minister, called the agreement “a major step forward for communities, businesses and the renewable energy industry”.

“This project will reduce greenhouse gas emissions while helping meet Victoria’s renewable energy generation targets,” Ms D’Ambrosio said, according to the Sydney Morning Herald.

The Bulgana Tesla solar battery is not expected to come online until mid-2019 but we expect to see similar agreements put in place over the coming year. Read more about the Bulgana project by clicking here to visit their website. 

Bulgana Green Power Hub Location
Bulgana Green Power Hub Location (source: bulganawindfarm.com.au)

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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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Hornsdale Wind Farm – Solar Powerpack Party!

Tesla CEO Elon Musk has attended a Powerpack unveiling at Noeon Hornsdale wind farm in Jamestown, South Australia. The Tesla South Australia battery partnership has been the talk of the nation since it was announced back in July. The lithium-ion battery is now 50% complete and will be built within 100 days of 29 September.

Tesla and the Hornsdale Wind Farm

The 129MWh lithium ion battery is being built to prevent load-shedding blackouts that have plagued South Australia in recent years, most notably in September 2016 when almost the entire state was without power at a point. These blackouts continued over summer as the government scrambled to work on energy security. It will also help

Tesla’s battery seeks to repair some of the energy security woes South Australia had to deal with – it will also help stabilise the grid while generators are started up (in the event of network issues / unexpected weather events).

The Hornsdale Wind Farm signed a grid connection agreement with Electranet on September 29 and some of the Powerpack units were already operational. As per the initial agreement between Musk and the South Australian government, Tesla now has 100 days to complete the task or it’s free – so the clock is ticking! 

If you want to learn more about the Tesla Powerpack in Australia please follow the link where we discuss Tesla’s commercial/industrial grade lithium-ion battery storage offering in more detail. 

Tesla Powerpack Celebration 29.09.2017

Hornsdale Wind Farm Tesla Powerpack
Hornsdale Wind Farm –
Tesla Powerpack Halfway Party (source: ABC.net.au via Tesla)

The party was held to celebrate the halfway point in the construction of their lithium-ion battery – Tesla invited politicians, local landowners and Tesla customers to a marquee overlooking the battery array, which is coming along nicely. “To have that [construction] done in two months … you can’t remodel your kitchen in that period of time,” Musk told the group with a broad smile on his face. The event was powered entirely by Powerpack batteries – it’s really exciting to follow this process and we can’t wait for 100 days to be up and see the results this has on the South Australian energy security crisis. 

Youtube user ‘Video2045’ has kindly uploaded a video of Elon Musk’s speech at the Jonestown ‘Tesla Powerpack Celebration’ – you can view it by clicking below!

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