The Tesla Powerpack farm in South Australia, hailed as the world’s largest lithium-ion battery and officially known as the Hornsdale Power Reserve, has seen its revenue jump by 56 percent during the final quarter of 2019. The additional revenue of the massive battery system was reflected in French renewable energy developer Neoen’s 2019 revenue statement, which was released recently.
In its report, Neoen stated that the increase in revenue for the 100MW/129MWh Tesla Powerpack farm came primarily due to a jump in the value of frequency and ancillary services. Neoen has reported a 14 percent rise in battery storage revenues over the full year of 2019 as well, and these were almost entirely from the Hornsdale Power Reserve.
In a statement to Renew Economy, Neoen CEO Xavier Barbaro stated that there is no doubt Tesla’s big battery in South Australia has been a resounding success. The CEO noted that the Powerpack Farm has brought “valuable service” to the grid’s operations. What’s remarkable is that this is just the beginning for Tesla’s big battery, especially since the Hornsdale Power Reserve is poised to become 50 percent larger after an impending expansion.
Today we are excited to announce the expansion of the Hornsdale Power Reserve in South Australia. In partnership with the SA Government, @ARENA_aus & @CEFCAus and supported by @Tesla. This project deepens Neoen's commitment to a future powered by #renewableenergy pic.twitter.com/mJnBMKCGnP— Neoen Australia (@NEOEN_AU) November 19, 2019
“We keep proving that what we do with lithium-ion batteries is the right solution and a competitive one for the grid. We are asked often to inject electricity for FCAS. It has proven to be well placed in terms of merit order in Australia and has dramatically reduced costs. What we have managed to do in 2019 proves that we are well placed, and probably better placed than others to provide that type of service,” the Neoen CEO said.
Reports from late last year have suggested that the Hornsdale Power Reserve is poised for a massive expansion, with sightings from the Tesla community indicating that truckloads upon truckloads of batteries were en route to the site of the Powerpack farm. These reports were later confirmed in a press release from Neoen, which specified that the expansion would involve a 50MW/65MWh extension to the existing 100MW/129MWh installation.
The Powerpack farm in South Australia remains one of the most prominent real-world examples of Tesla Energy’s potential. Prior to its installation, South Australia suffered from severe power shortages and high power rates. Thanks to a bet between Tesla and SpaceX CEO Elon Musk and Australian billionaire Mike Cannon-Brookes, the big battery was completed in less than 100 days. Since then, the installation has proven itself effective, providing backup power to the region in a quick and efficient manner.
Considering that Neoen is already seeing more revenue from the Hornsdale Power Reserve at its current state, it seems safe to assume that the Tesla Powerpack farm will earn even more once its expansion is completed.
Featured Image Credit: TeslaFollow @PurplePanda88