Article intro image
/ Bloomberg Finest of the Year 2017: Powerpacks which will be utilized to form the world’s biggest lithium-ion battery base on display screen throughout a Tesla Inc. occasion at the Hornsdale wind farm, run by Neoen SAS, near Jamestown, South Australia, on Friday, Sept. 29,2017


In the very first half of 2018, energy sales from Tesla’s 100 MW/129 MWh battery setup at the Hornsdale Wind Farm in South Australia generated EUR8.1 million in the very first half of 2018.

EUR6.7 million ($ 7.8 million) of that earnings originated from frequency control services. Another part of the earnings was produced through a 10- year agreement that Neoen has with Australian grid supervisors to buy AUD $4 million (EUR1.4 million, USD $2.9 million) worth of electrical power annually. The legal earnings is prior to interest, tax, devaluation, and amortization, nevertheless, so real numbers might be greater or lower.

The battery itself cost EUR56 million ($66 million), files state.

The brand-new info is thanks to French renewable resource business Neoen, which launched a report( PDF) detailing its service in advance of a going public (IPO). The numbers offer some depth to an earlier report released by the Australian Energy Market Operator (AEMO), which applauded the battery in April for its capability to rapidly offer so-called Frequency Control Ancillary Provider (FCAS).

Instead of drawing from the battery system to provide regular energy need, the battery is typically utilized to handle abnormalities on the grid. A battery can keep the grid’s even frequency if, state, a generator goes offline or electrical power need spikes unexpectedly. Those “secondary services” are generally served by gas-fired peaker plants on a conventional grid– gas turbines will rapidly launch or briefly boost production to make up for the electrical power slack on the grid. Since batteries are chemical and generators are mechanical, batteries can send out electrical power to the grid instantly without having to get a generator spinning at the best speed, so they’re much quicker at reacting to grid requirements than gas-fired generators.

Cool agreements

Restore Economy notes that Tesla’s battery at the Hornsdale Wind Farm has actually versatility developed into its different agreements. Particularly, 70 MW of the battery’s 100 MW capability is contracted to the Australian federal government. The other 30 MW can be utilized to arbitrage rates, providing electrical power when need is particularly high or supply is particularly constrained.

Neoen has another battery setup enhancing a solar energy plant at the minute, though it’s an off-grid battery system. This system serves the DeGrussa copper mine, and it assists balance out using 5 million liters of diesel a year.

The business hopes its success with the Tesla battery will be duplicated in a brand-new, smaller sized on-grid setup, with batteries when again offered by Tesla. That battery will be 20 MW/34 MWh, and it will be linked to the Bulgana Wind Farm in the Australian state of Victoria Restore Economy notes that Neoen has a handle the Victorian federal government ” to take 90 percent of the output from the 190 MW Bulgana Wind Farm and the 20 MW/34 MWh Tesla battery that will accompany it” and offer it for “in between $55/ MWh and $65/ MWh.”

Neoen’s report states that it has other storage websites in advancement, in France, Australia, and El Salvador. Neoen kept in mind in its report (equated from French) that it “means to continue to incorporate storage in its jobs to guarantee the stability of its photovoltaic and wind jobs and to increase their competitiveness and success. In addition, the Group has actually currently started to establish storage to produce brand-new sources of earnings, consisting of the arrangement of stabilization to Australian power grids.”