Elon Musk Wins Tender To Build World's Largest Lithium Battery in SA

Posted: 07/07/17 21:34

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The world’s largest lithium ion battery will be installed in South Australia after the tender was won by French renewable energy company Neoen, US sustainable energy company Tesla and the South Australian Government.

The energy storage systems from Tesla will be paired with Neoen’s Hornsdale Wind Farm and installed before summer.

Confirming the commitment from Tesla CEO Elon Musk to deliver the battery within 100 days or it is free, it has been agreed between Tesla and the South Australian Government that the starting date for the 100 days will be once the grid interconnection agreement has been signed.

After leading the nation in renewable energy, the 100MW / 129MWh battery places South Australia at the forefront of global energy storage technology.

The battery will operate at all times providing stability services for renewable energy, and will be available to provide emergency back-up power if a shortfall in energy is predicted.

The deal will also bring other investments by both Neoen and Tesla into South Australia’s economy, with details to be announced in the future.

The selection of Neoen will also strengthen South Australia’s links with France’s high-tech sector and reinforce the State’s world-leading role in tackling global warming.

South Australian Premier Jay Weatherill said today he was "thrilled with the selection of Neoen and Tesla, whose experience and world leadership in energy security and renewables will help South Australia take charge of its energy future."

"Battery storage is the future of our national energy market, and the eyes of the world will be following our leadership in this space. This historic agreement does more than bring a sustainable energy giant in Telsa to South Australia, it will also have some significant economic spin-offs," he said.

Romain Desrousseaux, Neoen Deputy CEO told media the company is proud to be working with the SA Government and Tesla.

"At 100MW and 129MWh, the Hornsdale Power Reserve will become not only the largest renewable generator in the state but also home to the largest lithium ion battery in the world, with our company’s long-term, direct investment in South Australia growing to almost $1 billion since 2013," he said.

Background

Wind power with battery storage has been recommended through the Finkel Review as well as AEMO’s recent reports to provide energy system security services – this plan delivers on these objectives.

Neoen was selected on a merit basis after a multi-stage procurement process attracted around 90 responses to the Expression of Interest, with 14 proponents invited to supply, and five shortlisted for detailed assessment.

The consortium demonstrated it is capable of delivering 100MW of capacity by December 1 and provided a highly competitive commercial offer with the best value for money.

Neoen and Tesla have a track record in comparable scale projects, and are committed to deliver on time at the lowest cost with a suite of value-adding initiatives.

In March, the State Government announced a plan for South Australia to take charge of its energy future, ensuring our State would become more self-reliant.

Australian Tenders has current tenders in SA and around Australia for Electrical Services. Choose the relevant category and region to conduct your search.

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