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Tesla’s Big Battery proved to be profitable in 2018

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The Tesla big battery in South Australia played a key role in lowering market costs and keeping the lights on while proving to be profitable in 2018.

The Tesla big battery, a 100MW/129MWh lithium-ion battery located in South Australia, that is owned by Neoen Australia has proved to profitable for the owners in 2018. The lithium-ion battery has also played a key role in reducing market costs and bringing power into the home.

The Hornsdale Power Reserve (the official name of the Tesla big battery) which cost $96 million to build brought in revenue of €18 million ($A29 million) in 2018 as we reported by reneweconomy.com.au. The profit from the operation (earnings before interest, depreciation, and tax) was €14.2 million for 2018 ($A22.8 million at current exchange rates), adding on to to €0.4 million of earnings from the single month of operation in 2017.

From its solar operations in Australia primarily the Griffith, Parkes and Dubbo solar farms, the Degrussa solar park and the newly complete Coleambally solar farm, Neoen also pulled in €32 million profit and €68.8 million from its wind farm operations, primarily in Hornsdale. According to Neoen, they also received compensation to the tune of €7.1 million due to delays in the commissioning of the solar farms.

The Tesla big battery’s success doesn’t come as a surprise, as Neoen has noted in its full year accounts that it is performing much better than what they had anticipated. According to a report by Aurecon in 2018, the battery helped cut $40 million from the costs of providing frequency support to steady the grid.

As a result of the Tesla battery’s success, there has been an influx of new battery investments – including the Gannawarra, Ballarat and Dalrymple North batteries, which are already fully commissioned.

This case study of the Tesla Big battery demonstrates how batteries from utility to home can assist in creating a more efficient power network. In South Africa there maybe some real concerns about the loss of jobs related to renewables . But in the long term, having a stable power grid/network will in turn allow more businesses to thrive, especially those that tend to be high power consumers.

Battery storage, such IG3N’s iNode , are proving to be a game changer for utilities allowing them to offset the revenues produced by the battery into old technologies which have higher costs of maintenance and lower efficiencies.

Although there is some negativity associated with the adoption of renewables, in the long term the cost benefit is higher if one takes into account that the process will be slow due political interference. Individuals and light scale manufacturing/businesses should consider renewable energy options which will assist them in saving the money long-term.

Read more about IG3N’s new iNode click here


Original Article by Giles Parkinson
Source: Renew Economy – https://bitlylink.com/ydEgG