Tesla’s giant battery in Australia reduced grid service cost by 90%
McKinsey and Co partner Godart van Gendt presented new data at the Australian Energy Week conference in Melbourne this week and claimed that Tesla’s battery has now taken over 55% of the FCAS services and reduced cost by 90%.
Tesla’s giant Powerpack battery in Australia has been in operation for about 6 months now and we are just starting to discover the magnitude of its impact on the local energy market.
A new report now shows that it reduced the cost of the grid service that it performs by 90% and it has already taken a majority share of the market.
When an issue happens or maintenance is required on the power grid in Australia, the Energy Market Operator calls for FCAS (frequency control and ancillary services) which consists of large and costly gas generators and steam turbines kicking in to compensate for the loss of power.
Electricity rates can be seen reaching $14,000 per MW during those FCAS periods.
Tesla’s 100MW/129MWh Powerpack project in South Australia can provide the same service cheaper, quicker, and with zero-emissions, through its battery system.
It is so efficient that it reportedly should have made around $1 million in just a few days in January, but Tesla complained last month that they are not being paid correctly because the system doesn’t account for how fast Tesla’s Powerpacks start discharging their power into the grid.
The big new trend in grid power is to invest in grid storage like this as well as sharing power with neighbouring countries. This helps smooth out the excesses and shortages that result from renewable energy generation (or other reasons). Power distribution and storage has become a lot smarter in this last decade.
|Tesla’s giant battery in Australia reduced grid service cost by 90%
Tesla’s giant Powerpack battery in Australia has been in operation for about 6 months now and we are just starting to discover the magnitude of its impact on the local energy market. A new re…