Hexbyte – Tech News – Ars Technica |
Pairing wind with batteries makes wind more competitive with fossil fuels.
In the first half of 2018, energy sales from Tesla’s 100MW/129MWh battery installation at the Hornsdale Wind Farm in South Australia brought in €8.1 million in the first half of 2018.
€6.7 million ($7.8 million) of that revenue came from frequency control services. Another portion of the revenue was generated through a 10-year contract that Neoen has with Australian grid managers to purchase AUD $4 million (€1.4 million, USD $2.9 million) worth of electricity per year. The contractual revenue is before interest, tax, depreciation, and amortization, however, so actual numbers may be higher or lower.
The battery itself cost €56 million ($66 million), documents say.
The new information is courtesy of French renewable energy company Neoen, which released a report (PDF) detailing its business in advance of an initial public offering (IPO). The numbers give some depth to an earlier report published by the Australian Energy Market Operator (AEMO), which praised the battery in April for its ability to quickly provide so-called Frequency Control Ancillary Services (FCAS).
Rather than drawing from the battery system to supply normal energy demand, the battery is often used to manage anomalies on the grid. A battery can maintain the grid’s even frequency if, say, a generator goes offline or electricity demand spikes suddenly. Those “ancillary services” are usually served by gas-fired peaker plants on a traditional grid—gas turbines will quickly start up or temporarily increas