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Tesla’s big battery at the Hornsdale Power Reserve was granted an electricity generation license by the Essential Services Commission of South Australia. Following regulatory approval, Tesla’s big battery will begin tests on the plant’s expansion, which started late in 2019.
The Commission has authorized the Hornsdale Power Reserves megawatt increase and consulted the public about the company's electricity generation license. The Commission's final decision was released on June 13, 2020.
"The Commission assessed Hornsdale Power Reserve Pty Ltd’s application for an electricity generation licence against the relevant provisions of the Electricity Act 1996 and the Essential Services Commission Act 2002 and determined that all relevant criteria under those Acts have been satisfied. It has therefore approved the application,” it said in an official statement.
According to Renew Economy, The Hornsdale Power Reserve has finished its 50% expansion with Tesla’s Powerpacks. The full power of the reserve is now 150MW/194MWh from 100MW/129MWh. Besides electricity generation, Tesla’s Powerpacks are expected to provide other services that have yet to be defined.
The Hornsdale Power Reserve will provide “synthetic inertia” to the grid, acting as a virtual power plant that Tesla has dubbed its' Virtual Machine Mode (VMM). In addition to the reserve's inertial benefits, Tesla’s Autobidder platform may help regulate the input and output of energy in its Powerpacks at Hornsdale.
Besides South Australia, Tesla was granted an electricity generation license in the UK. Given the similarities between the licenses, Tesla could construct a similar facility—like the Hornsdale Power Reserve—in the European country and provide support to the grid.
Tesla also registered Giga Shanghai as an electricity generator and transmission business in China, completing the Energy Department’s growth in key parts of the world. Back home, in the United States, Tesla has partnered with PG&E to install its Megapacks in Moss Landing. The project is poised to be one of the largest energy storage facilities in the world.
Recently, Jefferies raised TSLA’s target price from US$650 to US$1,200 and gave it a BUY rating. Jefferies analyst Phillippe Houchois made the call after concluding that the transition to EVs and renewable energy would accelerate because of the global pandemic.
Tesla has been recognized as a leader in both the battery electric vehicle (BEV) market and the renewable energy market for quite some time now. And recent power consumption and generation trends around the world support Houchois' conclusion.Follow @PurplePanda88