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Power Australia Technology

Tesla's Giant Battery In Australia Saved $40 Million During Its First Year, Report Says (electrek.co) 213

Last December, Tesla switched on the world's biggest lithium ion battery in South Australia to feed the country's shaky power grid for the first day of summer. Neoen, the owner of the giant battery system, released a new report for the first full year of operation and revealed that the energy storage system saved about $40 million over the last 12 months. Electrek reports: The energy storage capacity is managed by Neoen, which operates the adjacent wind farm. They contracted Aurecon to evaluate the impact of the project and they estimate that the "battery allows annual savings in the wholesale market approaching $40 million by increased competition and removal of 35 MW local FCAS constraint." It is particularly impressive when you consider that the massive Tesla Powerpack system cost only $66 million, according to another report from Neoen. Here are the key findings from the report:

- Has contributed to the removal of the requirement for a 35 MW local Frequency Control Ancillary Service (FCAS), saving nearly $40 million per year in typical annual costs
- Has reduced the South Australian regulation FCAS price by 75% while also providing these services for other regions
- Provides a premium contingency service with response time of less than 100 milliseconds
- Helps protect South Australia from being separated from the National Electricity Market
- Is key to the Australian Energy Market Operator's (AEMO) and ElectraNet's System Integrity Protection Scheme (SIPS) which protects the SA-VIC Heywood Interconnector from overload

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Tesla's Giant Battery In Australia Saved $40 Million During Its First Year, Report Says

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  • Were communications to its control computers *encrypted*??? ;-)

  • CEOs only care about fossil fuel kickbacks. Money is just a convenient way of measuring yachts, vacation houses, and all expense paid trips to corporate retreats.

  • The AUS experience suggests an architecture at scale Grid Operators can site to reduce dependency, detrimental reliance on peaker plants and cut rates - aka clean up its image, reliability and rate structure givebacks.

    • by Luckyo ( 1726890 ) on Thursday December 06, 2018 @06:51PM (#57763084)

      Not really. This is the edge case of isolated grid. It has very little meaningful commonality with well interconnected grids.

      Notably, you can substract "Tesla" from the story and it still makes sense. Battery storage has been used successfully in other similar places. It's just that in the past, PR has been less than stellar because those deployments were on islands, usually to the tune of single MW or so. This is showing that with significant amount of work, they could create a system that has a total of 35MW of momentary output. Which is great, because peaking an isolated grid is a complete and utter bitch to get done right.

      But that's not even remotely true in a large, well connected grid where balance is achieved through the fact that where someone has deficit, someone else likely has surplus. And we have about a century worth of experience how to balance such interconnects for maximum efficiency. In current consideration, there just isn't that much use for fairly expensive frequency control with a battery system when you have a multiple redundancies to handle this across any large interconnected grid.

      The good news here is that isolated regions will no longer have to pay exorbitant amounts for their electricity where they can't really tap into large interconnected grid for some reason (such as geographically remote location as is in this case). It's likely to be a massive improvement for such locations if rolled out en masse.

      • You are right about "Tesla" being unnecessary for this story. True. What wins is the battery, others are also capable of making such systems.

        But, it is not an edge case or applicable only in isolated areas. PG&E is replacing three peaker power plants [utilitydive.com] with battery storage. A well connected grid, and the application is not momentary load balance for frequency control. It is a well predicted clear rise in demand over four hours. Batteries are kicking the gas turbines out.

        Again the story, needlessly

        • by Luckyo ( 1726890 )

          Power plants in the West already work on razor thin margins. That's the status quo. And if you're even remotely sold on the idea that "batteries can replace peakers based on what I read in this story", you haven't actually read the story with any degree of understanding.

          First and the most obvious problem is material science. You're not just going to produce terawatts of battery capacity which would be needed for the project size of your suggestion. Then there's the problem that while high momentary output a

  • by Harlequin80 ( 1671040 ) on Thursday December 06, 2018 @06:45PM (#57763046)

    There are multiple solar farms in Australia that are currently not connected to the grid because they haven't been able to get their output stability to the point that the network operator will allow them to connect. The FCAS component of the farms always increased the cost and reduced the output significantly but was key to keeping the network stable.

    This has been a relatively new change though, a couple of years ago solar compliance was taking a week to 10 days before allowing connection. Now it's out to 6 months or more. This unfortunately caused RCRTomlinson a large civil contractor to collapse as they had final payments on projects tied to the grid connection of projects.

    https://reneweconomy.com.au/rc... [reneweconomy.com.au]

  • by 140Mandak262Jamuna ( 970587 ) on Thursday December 06, 2018 @06:46PM (#57763054) Journal
    The whole company is a bet on the Moore's law for batteries curve. Battery pack price will halve every seven years. It was around 250$/kWh back when the Roadster debuted. And it is around 125 $/kWh seven years later.

    Every sector will see fundamental changes. 40% of the cost of tunneling is the HVAC system designed to remove diesel fumes from confined spaces. Replace diesel earth movers with battery powered ones, and you get a 40% cost savings. The Boring company cost savings is expected to be 40%. Coincidence?

    • Seven years later? It's over 10 years after the Roadster was delivered to customers.

  • by Actually, I do RTFA ( 1058596 ) on Thursday December 06, 2018 @06:55PM (#57763100)

    Panasonic owns a lot of the battery tech, or part of the gigafactory, or something. I know they let Tesla put their name alone on everything, but I'm curious about the IP/ownership there.

    Anyone have a good summary?

  • If you wreck the grid first driving up your costs.

  • What're the costs associated with disposing of this number of batteries as they reach end-of-life? Are they recyclable? Anyone got a good link to info on this?

  • by Anonymous Coward on Friday December 07, 2018 @12:08PM (#57766394)

    Given the natural laws of Australia, unless it proves ridiculously dangerous to human beings (as is every man-made and natural thing in AU), it's going to miss out on the survival model.

    Now, if it were to, say, electrocute someone every few weeks, it would fit right in.

    It *HAS* to be making an effort to kill and/or eat people if it's going to fit in with everything else in Australia.

"The vast majority of successful major crimes against property are perpetrated by individuals abusing positions of trust." -- Lawrence Dalzell

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