The bulk power industry has been understandably skeptical regarding alternative power generation and battery storage. After all, what could possibly compete with their huge, multi-megawatt power stations? However, slowly, but surely they are beginning to realize things can’t remain the same forever. Tesla’s giant South Australia battery is proving grid storage is economically feasible too.
How the South Australia Battery Came About
Tesla built the Hornsdale Power Reserve – known colloquially as the South Australia Battery – adjacent to an existing wind farm late last year. This was after a major collapse of the South Australia electricity grid. Power issues had plagued the state for a number of years resulting in numerous unplanned outages.
The intention was to have 100 megawatts available to support the system within a few nanoseconds. Prior to this, South Australia needed several minutes to bring a peaking station up to full power. Spare units at power stations take several hours longer to synchronize even when in spinning reserve. The result was a previously highly unstable grid.
How the Giant Battery Has Started Making Money
The South Australia Battery keeps 70 MW (39 MWh) on standby for the South Australia grid. It trades the remaining 30 MW (90 MWh) on the open market when prices are highest at peak times. Between January 18 and 19, 2018 it sold electricity at around AU$14,000 per MWh that cost it almost nothing to generate. The deal was worth US$800,000.
Nuclear, gas, and coal power stations have to keep on buying fuel. However, in the case of solar, wind, and hydro nature provides the store of energy free. This capability is the secret sauce in green energy. Our future security relies on free, abundant renewable electricity. On January 18 and 19, 2018 the South Australia grid storage battery demonstrated just how affordable this could be.
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Preview Image: Hornsdale Wind Farm Panorama
