The Tesla big battery at Hornsdale in South Australia continues to make its mark on the Australian energy market, pocketing another $4m in the fourth quarter from the provision of frequency and ancillary services.
The number was revealed in the Australian Energy Market Operator’s latest Quarterly Dynamics report, which also reveals a growing focus on energy storage, and time shifting and energy arbitrage in particular.
The fourth quarter was notable because it saw the number of big batteries on the main grid multiply, with the addition of the Dalrymple North battery in South Australia, and the Gannawarra and Ballarat big batteries in Victoria.
It also saw a record amount of pumped hydro used since 2008, a sure sign of the greater role for energy storage that is to come as the share of wind and solar continues to soar and more battery and pumped hydro systems, along with other forms of storage such as hydrogen and solar thermal, come into the system.
The performance and business model of the Tesla big battery has been a source of fascination for the industry since its opening more than 14 months ago. Tesla founder and CEO Elon Musk recently confirmed that the $95m facility was likely to pay itself back within a few years.
The battery, actually owned and operated by Neoen Australia, receives a $4m a year payment for providing grid services to the South Australia government – a payment worth significantly more given its recent performance keeping the lights on in the state after a lightning strike in northern NSW led to load shedding and generator trips in all other states.
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