According to Electrek, The 100 MW/129MWh Powerpack battery from Tesla, located in Australia, has been operating for the past six months and reduced the cost of its grid service by 90 percent.
How the battery works: when problems arise, or when maintenance is needed in the country’s power grid, the Energy Market Operator calls for frequency control and ancillary services (FCAS). FCAS consists of “large and costly gas generators and steam turbines kicking in to compensate for the loss of power,” Electrek says. During these times of need, electricity rates can hit up to $14,000.
However, Electrek says that the battery has taken up a major share of the market; it can provide services “cheaper, quicker, and with zero-emissions,” and is slowing squashing the profits of oil and gas companies. It also “reportedly should have made around $1 million in just a few days in January.”
What decision makers need to know:
While Australia seems to be benefitting from Tesla’s battery, the company isn’t happy with its current payment plan: “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,” Electrek says. As a result, the system appears to be a victim of its own efficiency.
In a previous report, Electrek said that “while generators and power plants ramp up relatively slowly to respond to FCAS, Tesla’s battery system can almost instantly release the required power to respond to the drop in frequency and now it claims that the difference is not being accounted for.” However, the company has not disclosed that amount.
Decision makers who are interested in investing in a similar energy efficient setup should consider the relationship Tesla has with Australia. Before pulling the trigger, it might be a good idea to sort through a payment schedule, and run the traps to see what will happen if the battery provider’s solutions works too fast, or even too slow, for example. That way, both the company and beneficiary are prepared, and each side’s needs are met.
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