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. 

 

“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:

 

 

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. 

 

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)

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! 

Solar Powered Trams in Melbourne / VRETs

Victoria has been working on a plan for solar powered trams over the past year and it looks like the Andrews government has moved one step closer with the project – announcing plans to build two new Victorian solar farms to power Melbourne’s tram networks. If that phrase conjured up the image of a bunch of trams with solar panels on top, unfortunately not yet – but using renewable energy to power public transport is a great step forwards. We already have projects like the Valdora solar farm run by the Sunshine Coast Council to power all their energy needs so it’s very encouraging to see the public sector moving in (some semblance of) lockstep with private innovation and investment. 

Melbourne’s Solar Powered Trams

Premier Daniel Andrews Solar Powered Trams
Victorian Premier Daniel Andrews announces Solar Powered Trams.

Premier Daniel Andrews announced that Bannerton Solar Park and the Numurkah Solar farm have won tenders to provide renewable energy to power Melbourne’s trams, offering 100MW and 38MW respectively for the network. The $100m Bannerton project will consist of 95,000 solar panels and is expected to reach full completion by July 2018. The Numurkah Solar Farm will output 100MW via 300,000 solar panels on 500 hectares, but only 38MW of this will be going to the government. French solar plant developer Neoen (who will partner with Tesla to create the world’s largest lithium-ion battery in South Australia) will commence construction in early 2018.

In January Energy, Environment and Climate Change Minister Lily D’Ambrosio advised that they would use one solar plant with 75MW of power – and that half of this would go to the tram network as 35MW was sufficient to cover the energy needs of 410 Melbourne trams. Despite opposition energy minister David Southwick decrying it at the time as a ‘media stunt’ and said Andrews’ government should be ‘fighting for the most affordable power deal for Victorians’, the government has forged ahead and have doubled down on their renewable energy plans – announcing Victoria’s Renewable Energy Targets for 2020 and 2025. 

Victorian Renewable Energy Target

Legislation introduced to Parliament (the first time RETs have been enshrined in state legislation in Australia) last week has set Victoria’s RETs (Renewable Energy Targets) to 25% at 2020 and 40% by 2025. According to the Herald Sun, they haven’t released any modelling showing what the figures are based on, but the RET will mean a cut to energy prices of $30 p.a. for an average family. 

According to Andrews, “The VRET will cut the average cost of power for Victorians by around $30 a year for households, $2,500 a year for medium businesses and $140,000 a year for large companies, while driving a 16 per cent reduction in Victoria’s electricity sector greenhouse gas emissions by 2034-35.”

The VRET legislation allows for a competitive reverse auction (i.e. the lowest bidder wins) for up to 650MW of power (enough to power Geelong, Ballarat, Bendigo and the Latrobe Valley combined) , which Clean Energy Council chief exec Kane Thornton says will ‘turbocharge’ the renewable energy industry in Victoria, calling it a ‘major step forward for communities, businesses and the state’s renewable energy industry’. 

Political grandstanding or a massive step forward for renewable energy in Victoria? Is it necessarily a zero-sum game? We’ll know very soon – watch this space and we’ll keep you updated on how things are going! With the first legally binding state RETs Victoria are certainly putting their money where their mouth is and doing their bit to reduce emissions and move towards a renewable energy future.