Victoria solar feed in tariffs to vary based on time.

Victoria solar feed in tariffs – the state’s Essential Services Commission has this week released the details of a brand new feed in tariff (FiT) which changes depending on the hour of the day. It will be introduced to Victoria on July 1. Whilst not compulsory to begin with due to their complicated nature, the tariffs will likely be enforced in 2019/20.

Victoria solar feed in tariffs overview

Victoria solar feed in tariffs - Essential Services Commission
Victoria solar feed in tariffs – Essential Services Commission (source:

Changing from a flat FiT to one that is more in life with electricity demand makes sense given that a major problem for solar energy is dealing with supplying power in peak times and during heatwaves. Previously solar feed-in tariffs were calculated on a flat basis, and, although they’ve been raised recently, it’s been neglecting the idea that offering more money for people to feed power back into the grid via a ‘virtual power station’ is likely to help mitigate periods where electricity is unavailable or at a ridiculously high price. 

The idea of a ‘virtual power plant‘ is something being worked at via a supplier level (The AGL Virtual Power Plant‘), a state level (ACT’s Next Generation Energy Storage Program) and a combination of the two (Tesla’s virtual power plant in South Australia). This marks the first time they’ve tried to do this via varying FiTs, however., 

According to RenewEconomy, the regulations will require retailers pay a minimum of 29c per kWh for those who exporting power between 3pm and 9pm, a minimum rate of 10.3c per kWh those feeding power back into the grid between 7am and 3pm, and a minimum rate of 7.1c/kWh (which is actually less than the current price of 7.2c) for those exporting energy during off-peak hours – during 10pm and 7am. So, if people want, for 2018 they can pay an alternative flat rate of 9.9c/kWh, down 1.3c/kWh from the previous flat rate. 

The ESC said that the lower cost for the flat rate from modelling from ACIL Allen. This modelling showed that the “any-time price”of electricity has fallen, but the evening peak price is now higher, and that the constant addition of solar connections will lead to even lower day time prices.



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:

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. 


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 (

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! 

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! 

Renewable energy in South Australia

Industry analysts have advised that renewable energy in South Australia will replace gas as SA’s primary source of electricity within eight years. A report by Wood Mackenzie says that by 2025 battery storage will be cheaper than OCGT (open-cycle gas turbine) plants.

The future of renewable energy in South Australia

Renewable energy has been a huge topic of conversation in South Australia lately, especially after the Tesla South Australia battery partnership was announced earlier this month. Despite having a torrid time of it last year with widespread blackouts, premier Jay Weatherill has been forging ahead with his vision of a state primarily powered by renewables, and has been doing a great job. The Lyon Group recently announced a $1 billion battery and solar farm for SA and there are myriad others on the books.

Renewable Energy in South Australia Jay Weatherill
Jay Weatherill – championing renewable energy in South Australia (source:

The report, created by Wood Mackenzie and Greentech Media Research, forecast that battery costs will decrease by 50% by 2025. Bikal Pokharel, an analyst for Wood Mackenzie, noted that SA’s peak loads are currently managed by the OCGT plants, but this will change in the future. By 2025, Pokarel says, “battery storage would be cheaper than OCGTs in managing peak loads … OCGTs would then be relegated as emergency back-ups.”

“If current cost trends continue, 2025 could very well see renewables and batteries overtake rival generating alternatives in dominating South Australia’s power system, and the region could become a leading case study on managing a power system in transition for other mature markets to follow,” Pokharel said.

If the renewables projects currently on the books proceed, by 2025 a whopping 67% of South Australia’s energy requirements will be met by renewables. Since solar and wind power isn’t as reliable as traditional methods, ‘dispatchable power’ will be required to cover base loads – and according to Pokharel, “Current gas supply and transportation terms cannot meet this type of demand profile”.

Funnily enough, expensive diesel generators may become a viable option since they (and their fuel) are simple to store and can be set up quickly. In order to use gas as dispatchable power, changes must be made to the operation of the market – involving offering subsidies for “must-run” gas units or standing capacity.

It’s great to see South Australia leading the way with their charge towards a renewable heavy energy economy and we’re excited to see where this leads in the future.