A $38M Tesla Battery Plant to Run in SA Starting Next May

A $38 million Tesla battery plant in South Australia is on course to be running in May 2019.

The new 25MW/52MWh grid-scale battery will be built by Infigen Energy at the Lake Bonney wind farm with funding from the Australian Renewable Energy Agency and the state government.

“This project has had its challenges but it’s actually travelling very well at the moment,” said Igor Brandao, general manager of development at Infigen.

“It’s comprised of 296 battery packs and 48 converters …These are all containers that will be sitting on a bench and connected to the substation which is where the Lake Bonney wind farm connects into.”

Infigen’s CEO Ross Rolfe said the Tesla battery will help Infigen to become an active electricity market participant. “With this capability Infigen will be able to expand its supply contracts from the Lake Bonney Wind Farm to additional commercial and industrial customers in South Australia, which is at the heart of our business strategy,” said Rolfe.

“We will also be able to reduce our exposure to FCAS costs and respond to the impact of the five-minute settlement rule when it is introduced in 2021.”

The plant is expected to last 10 to 15 years.

Tesla has previously built a battery plant in the state’s Hornsdale region, which is now owned and operated by French renewable energy company Neoen.

Since the 100MW/129MWh Hornsdale power reserve went live, South Australia has seen reduced costs in calling for back-up energy, also known as Frequency Controlled Ancillary Service (FCAS). According to AEMO’s first Quarterly Report of 2018, FCAS costs dropped 57 per cent or around $33 million in the plant’s first quarter of operation.

Battery has played an important role in keeping South Australia online, especially after the statewide blackout in September 2016.

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