Tesla's ESS in Australia pays back fast
According to an IPO application released by French company Neoen, which operates the world's largest battery energy storage system in South Australia (129 MWh/100 MW at Hornsdale wind farm), the ESS supplied by Tesla in 2017 is lucrative investment.
The whole cost of the ESS was €56 million ($66 million) or nearly $512/kWh (includes not only batteries, but also all the power electronics, connections and installation). Revenues in the first 6 months amounted $17 million (over 25% of the cost)!
Revenues breaks into two categories:
- €8,1 million ($9.5 million) for the grid services and energy sales
- €6,7 million ($7.9 million) for storing and selling electricity from the wind farm
"It’s unclear how Neoen is attributing the value of the stored electricity from its wind farm since it is accounting the two assets as a whole in terms of revenue, but it would mean the battery system generated between ~$10 million and $17 million during roughly its first 6 months of operation and it is on pace for over $20 million in revenue during its first year."
It means that the most money comes from stabilizing the grid (not from the wind farm needs itself) - there were several reports on how much money it generates. Apparently, since the launch of the ESS, costs of grid services decreased by 90%.
That should enable it to achieve a payback period of just a few years.
Neoen operates 2 GW of wind and solar farms and hopes that IPO will enable to raise €450 million to increase capacity to 5 GW by the end of 2021.