Featured image: Green Biz
Neoen reported a nearly threefold increase in battery storage revenues in the first half of 2020, thanks to Tesla Powerpacks used for the Hornsdale Power Reserve project.
French renewable energy and battery storage company Neoen said its battery storage revenue in the first six months jumped to €24.6 million ($40.4 million) from €8.4 million. The company's revenue comes almost entirely from Hornsdale Power Reserve, the world's largest lithium-ion battery.
The jump was attributed to an event in February when a tornado tore the main power line between Victoria and South Australia. This proves once again that Hornsdale and other large batteries play a critical role in providing network services and keeping lights on.
Source: ABC News
Hornsdale — also known as the Tesla big battery — turned the FCAS market upside down when it hit the market in late 2017. Apart from the direct benefits of using it, batteries can also make money from energy arbitrage by buying cheap and selling high. They can also provide many other valuable network services.
Hornsdale is now trying to make a case for a market for synthetic inertia through the expansion of its battery. More Tesla Powerpacks were added to the Hornsdale battery, expanding it by 50%. The expansion started in November 2019 and was completed this year. Its full power is now 150MW/194MWh, up from 100MW/129MWh. Last month, the Hornsdale Battery Reserve was granted an electricity generator license by the Essential Services Commission of South Australia right after its completion.
Overall, this was a strong first half of the year for Neoen. The company's revenues rose by a third to 152 million euros.
Neoen also reaffirmed its global goal: by the end of 2021 to have commissioned or under construction more than 5 GW of capacity, and that, by the end of 2022, this capacity will be fully operational.