South Australian Virtual Power Plant

South Australian Virtual Power Plant could be 30% cheaper than grid power, says report

Tesla and the South Australian government announced in early February that they were planning the largest “virtual power plant” (VPP) in the world. The VPP brings together 50,000 homes, each equipped with solar panels and lithium-ion battery energy storage, to function as a unified power generator.

A new report from Australian clean energy publication Reneweconomy shows just how financially attractive the proposal has become. In 2016, Reneweconomy stated that in some cases solar-plus-storage costs were on par with grid power – now, they can be up to 30% cheaper.

The cost savings are especially important for both Australia and the Tesla project in question. Electricity rates across the country and the state of South Australia are some of the highest in the world, and the first phase of households participating in the VPP project are Housing Trust properties set aside for lower-income residents.

The total generating capacity of Elon Musk’s VPP project is 100MW, with 129 MWh of battery storage. To make up this total, a 5 kW solar panel array and Tesla Powerwall 2 lithium-ion home battery will be deployed in each individual home.

The reason for the sharp drop in price between 2016 and today is due to the reduced cost of solar installations and storage technology as well as more efficient energy storage usage. Total costs for the virtual power plant project are estimated to be approximately $800 million – Musk is betting that the energy savings will be worth the upfront costs.

South Australian power costs are so high that residents have been turning to solar and battery storage at unprecedented rates. Last year, 20% less electricity was bought from the grid than just 7 years ago as more and more people rely on self-generation and self-consumption.

While this level of difference may be exclusive to Australia and its dizzyingly high electricity rates, it signals the shape of things to come.

If you want to know more about this and other topics directly from end users of energy storage technologies join us at one of these annual events: The Energy Storage World Forum (Grid Scale Applications), or The Residential Energy Storage Forum, or one of our Training Courses.

Read the original article


Germany frequency control project

German frequency control project combines batteries and power-to-heat

Swb Erzeugung AG & Co, a German utility based out of Bremen, has ordered a hybrid grid frequency regulation solution which will use both battery energy storage and power-to-heat facilities. Multinational AEG Power Solutions have been awarded the contract. The Bremen utility supplies the local area with not only power and heat but also internet,…

Read More

What value is reliance to ESS

What value is resilience to energy storage systems?

New findings from the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) and Clean Energy Group (CEG) that when the value of resilience is taken into account — preventing power outages — several more integrated solar-plus-storage projects are economically viable. The findings, presented in a new paper, use detailed modeling of several different building…

Read More

energy storage industry news

Would you like to receive energy storage industry news, free powerpoint presentations and opinion articles from our team?

YESand if I don't like it I will unsubscribe! MAYBE LATERI am busy now thinking all things energy storage