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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 from €8.4 million. The company's revenue comes almost entirely from the Hornsdale Power Reserve.
Tesla's large battery in South Australia generated windfall profits for Neoen in the first half of 2020, largely due to the pivotal role it and other large batteries played during a major storm that destroyed the state's main link to Victoria.
The Hornsdale battery, along with both the Tesla batteries at Lake Bonney and at Dalrymple North, were asked to play a key role stabilizing the South Australia grid during the 17 days that the state was “isolated” from the rest of the main grid. And in return, a huge bonus in revenue and profits were generated, according to Renew Economy.
Credit: Clean Energy Finance Corporation.
The windfall profit means that Hornsdale's battery generated a total revenue of €54.4 million in its first two and a half years of operation, almost equal to the cost of its very construction. This means that in just two and a half years, the project has paid for itself.
It's also important to remember that the Hornsdale battery has provided consumers with savings that are already valued at more than €90,65 million, and has played a key role in keeping the lights on at a number of major networking events.
However, Neoen does not anticipate a repeat of this contingency—unless, of course, another violent storm brings down the main connector connecting the two states.
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About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.