Corporate News Blog – Tesla and Neoen to Build the World’s Largest Lithium-Ion Battery Storage System in South Australia

LONDON, UK / ACCESSWIRE / July 10, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Tesla, Inc. (NASDAQ: TSLA), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=TSLA. The Company announced on July 06, 2017, that has landed the winning bid to build a 100 MW/129 MWh Powerpack system in collaboration with France’s global renewable energy provider Neoen. Tesla won the winning bid via a competitive bidding process and would be responsible for the project’s complete energy storage system in South Australia (SA). For immediate access to our complimentary reports, including today’s coverage, register for free now at:

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Elon Musk, CEO of Tesla, personally went to Australia to sign the agreement with the SA government and claimed that the lithium-ion battery would be “three times more powerful than anything else on earth”. He personally guaranteed that Tesla could get the entire system installed and in working condition with 100 days from the signing of the grid interconnection agreement. If not, the Company would do the project free of charge. If the Company is not able to keep its promise, it could cost the Company $50 million or more.

Commenting on the challenging project, Elon Musk, CEO of Tesla said:

“When you make something three times as big, does it still work as well? We think it will, but there is some risk in that. We are confident in our techniques and the design of the system.”

Jay Weatherill, State Premier of South Australia added:

“I’m thrilled with the selection of Neoen and Tesla, whose experience and world leadership in energy security and renewables will help South Australia take charge of its energy future. Battery storage is the future of our national energy market and the eyes of the world will be following our leadership in this space.”

Romain Desrousseaux, Deputy Chief Executive of Neoen commented:

“At 100MW and 129MWh, the Hornsdale Power Reserve will become not only the largest renewable generator in the state but also home to the largest lithium ion battery in the world, with our Company’s long-term, direct investment in South Australia growing to almost $1 billion since 2013.”

Details of the project

The project is part of South Australian government’s $550 million energy plan to battle the power outages in the state. The agreement is between the South Australian government and Tesla in collaboration with French energy utility Company Neoen. Tesla’s was the winning bid out of the 91 international bids received by the South Australian government.

The project will be built on Neoen’s Hornsdale Wind Farm near Jamestown, South Australia. The project envisions the use of Tesla’s Powerpacks to store energy produced from Neoen’s wind farms during non-peak hours and then releases the stored energy back into the grid during peak hours. This would help lower the cost of electricity for its consumers.

The system is expected to be completed by December 2017. Once it is completed, the project will be one of the largest lithium-ion battery based storage system in the world. The system will not only help the government move towards large-scale renewable energy storage but also help in stabilizing the renewable power being fed into the grid. At full capacity, the system will be able to last for an hour. This indicates that the system is more of a stabilizer for the grid than a full-fledged energy supply system.

The 100-megawatt (129 megawatt/hour) battery would be able to provide enough power to meet the needs of more than 30,000 homes. This is nearly equal to the number of homes that were affected during the power blackouts experienced in September 2016.

The project also highlights the versatility of Telsa’s ability to customize its battery offerings to suit client’s needs, in this case, the use of Powerpack system for wind-based energy storage. This also demonstrates Tesla’s ability to apply its Powerpack system across various type of renewable energy apart from the solar energy for which it is primarily built. If successful, the project will open other doors for Tesla and help the world in adoption and acceptance of renewable battery based energy storage systems.

Background

In September 2016, severe thunderstorms damaged SA’s electrical infrastructure and resulted in a widespread power outage and load-shedding. To address the issue and find a solution to the power problem, the SA Government announced a $550 million energy plan. As per the plan, the SA government planned to build, own, and operate a new 250-megawatt gas-fired power plant costing approximately $360 million. Apart from this, the SA government also started a new $150 million renewable technology fund that would finance a project involving the private sector to build Australia’s largest battery with a 100MW output. The financing for these projects would not affect taxpayers and would come from budget surpluses.

Last Close Stock Review

On Friday, July 07, 2017, the stock closed the trading session at $313.22, rising 1.42% from its previous closing price of $308.83. A total volume of 14.10 million shares have exchanged hands, which was higher than the 3-month average volume of 7.36 million shares. Tesla’s stock price soared 4.86% in the last three months, 38.13% in the past six months, and 45.05% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 46.58%. At Friday’s closing price, the stock’s net capitalization stands at $54.49 billion.

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