Elon Musk Accepts Challenge To Install 100 MWh Tesla Powerpack System In 100 Days Or Its Free

Elon Musk

MAR 11 2017 BY MARK KANE 29

Tesla Powerpack visualisation

Tesla’s Vice President for Energy Products, Lyndon Rive said that Tesla is able to solve South Australia’s power woes within 100 days (from contract signature), delivering 100-300 MWh energy storage system.

Tesla Powerpack

Well, you have to be careful what you say in public, as there always someone who would like to test how serious enough.

In this case, Australian billionaire Mike Cannon-Brookes asked on Twitter:

“Lyndon & @elonmusk – how serious are you about this bet? If I can make the $ happen (& politics), can you guarantee the 100MW in 100 days?”

The response come from Elon Musk, which not only confirmed 100 days deadline, but even offers whole system for free if Tesla fails to deliver:

“@mcannonbrookes Tesla will get the system installed and working 100 days from contract signature or it is free. That serious enough for you?”

So we have a challenge – energy storage deliveries within 100 days, in a scale of 100+ MWh.

And prices of batteries (from 100+ MWh) are to be fixed globally at $250/kWh excluding shipping and taxes.


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29 Comments on "Elon Musk Accepts Challenge To Install 100 MWh Tesla Powerpack System In 100 Days Or Its Free"

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It’s 100 days from signing of the contract. Tesla (or Musk, take your pick) hasn’t signed the contract yet. Nothing has been accepted yet.

Musk’s insistence on world fixed pricing is also as weird as ever. We can’t even tell what is priced in here. Does it include an engineering review of where this stuff will go or site prep? Does it include AC to DC converters? There’s a fixed price for a nebulous product. So strange, the fixed pricing claim just doesn’t really make any sense. Musk is an odd duck. Very effective at some things though.

site prep would be labor/install. Labor/install isn’t included. That is the price for product only.

Site prep is definitely not install.

It certainly ain’t part of the “pack”. $250 is “pack” price. See Maarten’s post below for explanation.


So you’re saying that it doesn’t include the AC to DC converters?

This price offer is ridiculously non-specific. As-is it doesn’t really mean anything.

The name of the product Tesla is selling is the Tesla Powerpack.

You will continue to remain confused, as long as you willfully want to be confused. 3 people have explained it to you.

It’s not me causing the confusion.

Tesla’s specs for the PowerPack don’t say if they include an AC to DC converter in that price.

So yeah, with just 140 characters used to explain what $250/kWh means there is plenty of room for confusion. And it’s not because of me, it’s because it wasn’t made clear.

You seem clear on this. You tell me. Does $250/kWh include AC to DC converters? And how did you find this out?

The information given is hopelessly vague.

The tesla power pack 2 includes an inverter. It is an inverter when going between AC and DC and a converter when going between different voltages in DC.

“Site prep is definitely not install.”

Maybe an experienced construction manager would account for it separately, but I think most reasonable people would include that as part of installation.

From here, Unlucky, it looks like you’re splitting hairs.

What are you talking about?

No experienced person at all would sign a contract which specifies a price but doesn’t indicate what it covers. Yes, it matters whether site prep is included. Or, again, whether any kind of engineering investigation into what is actually needed and where. Spending a bunch of money on storage when you haven’t done a study to ensure it would fix the problems you’re having would be insane.

All this stuff matters and it matters a lot. It’s not just spilling hairs.

While a contract would specify everything, a tweet with world fixed pricing most obviously does not include site prep.

Some things are obvious and you stirring the pot to claim some things are not is just stirring the pot.

Unclear terms favor Tesla – sure. But site prep isn’t the unclear term.

This is the price of the installation as it leaves the factory in Sparks, Nevada. An installation consists of to types of cabinets. Storage cabinets and converter cabinets.
What is not included is shipping, taxes, any local costs to get this set up and running including the connection to the grid, the control infrastructure and project overhead.

Tesla has no control over these costs and can not put a price on them in advance.

Looks like he was asking for a pricing break with the phrase “Mates rates”.

Would be a cool experiment to see if it does solve their problems – great PR. Maybe he gives them a small price break for advertising? But I’m guessing not.

They’re already talking about upping the order to 1 GW:

“Mike Cannon-Brookes‏ @mcannonbrookes
@elonmusk @JayWeatherill not to push my luck… big $ commitments pouring in. Are 10 x 100MWh installs (grid distributed) possible or crazy?”

Great News for S. Australia, and Tesla Energy.

Yup, great news for the energy branch of Tesla, i see much potencial growth of profits in it.


Hope this doesn’t delay Model 3 😉

Big difference between ‘100 MWh’ and ‘100 MW’ systems. AFAIK, they are rated for c/4 discharge. Are they asking for 100 MWh or 25 MWh? Once again, I’m so confused!

Customer asks for 100MW, tesla answers with 100MWh… Good point. Tesla should have answered with more than 100kWh, if they would read properly.

There is nothing confusing.

Tesla’s Vice President for Energy Products, Lyndon Rive gets the units right, saying a “100-300 MWh” energy storage system would solve their problems.

Cannon gets the units that Rive used wrong in his tweet.

Musk correctly goes back to the correct MWh units that Rive used. It is 100-300 MWh.

I think its the capacity they’re short, times the duration. Two hours, maybe three, or four, ends up landing them at a common ratio of 3-4X, MWh to MW.

Tesla should go into talks with the Aluminum Smelter in this area that has to keep powering down every time the power grid has a shortage of power. http://www.abc.net.au/news/2017-02-10/nsw-power:-blackouts-across-the-state-averted/8260830

This other smelter could use a 500 megawatt battery system to pump up production. http://www.cnbc.com/2017/02/21/reuters-america-power-struggle-australian-smelters-grapple-with-electricity-uncertainty.html

They must really be cranking out the batteries. And the time that the batts have to ‘cure’ must be drastically reduced with the new 2170s.

They could also delay signing while they make the cells.

Realistically, until Model 3 production revs up they potentially have a lot of extra capacity at the Gigafactory. 100MWh is only 1500 Model 3s. It’s a week’s production even at moderate (early moderate) Model 3 production rates.

This is a win-win for everyone! A win for South Australia in gaining some energy independence — and at least hopefully, moderating demand spikes will help prevent electricity rates from rising too much in the region.

A win for Tesla Energy, in that such a high profile friendly bet will help attract attention and raise awareness of what PowerPacks can do for electric utilities and for high consumption electricity users.

Go Tesla Energy!

The sad part is the last I looked Australia didn’t have a smart rate structure. Fix the rate structure and you fix the problem. But I am not up on this latest issue. I just remember last year they had a huge midnight spike because rates went down at midnight. Super easy to have alternate side of the street time variables – 1 am for odd addresses.

I hope everyone involved knows which $ the prices being bandied about refer to as AU$ US$, not by a long chalk.

The tweets talk about it being a global price. If anybody thinks a global price would be in AUD or CAD or HKD instead of USD, they shouldn’t be anywhere near a deal like this.

It is amazing the amount of completely fabricated problems that appear whenever a Tesla story appears here.

What is your motivation for searching high and low to fabricate this stuff?

(‘the system’ deleted the ‘not equal to’ symbol between ‘AU$’ and ‘US$’…)