Tesla’s battery in South Australia made $1 million in profit in just a few days

The massive battery system moves from showboating to money-making

The massive battery system moves from showboating to money-making

It was last December when Tesla’s 100MW Powerpack battery went online in South Australia. Connected to a wind farm, the world’s biggest lithium-ion battery is three times more powerful than the next biggest battery and can respond to demand peaks almost instantly, ramping from 0 to 100MW in 140 milliseconds. But apart from these spectacular facts, the Tesla battery, formally known as the Hornsdale Power Reserve, has also started proving its financial worth. Over the period of 18-19 January, it seems that it may have earned its owners, Neoen, around $1 million AUD ($800,000 USD) from the wholesale market. Currently, 70MW/39MWh of the battery's capacity is contracted by the South Australian government to be used when needed, while Neon, the Hornsdale operator, has control over the remaining 30MW/90MWh, which they can choose to trade on the wholesale market.

In the diagram below, blue bars indicate generation, which was mostly dispensed at very high prices, particularly during the big spikes on Jan. 18th and 19th afternoons. Red bars indicate charging, or load, and this occurs mostly during lower-pricing periods. According to the figure, Neoen was able to sell electricity at around $14,000 AUD per MWh on January 18 and 19, while barely paying anything at all to generate it.

The Tesla big Battery in South Australia seems to be particularly effective, proving that Tesla's design is an efficient, reliable, and profitable solution to the region's energy needs. And there is more to come, as the two companies are already collaborating to build a 20MW battery in the Australian state of Victoria, and Neoen is planning to develop a battery in Queensland.

Source: Renew Economy