World’s largest lithium battery cost $90.6m but revenue is healthy, according to documents filed by French renewable company Neoen
The Hornsdale windfarm, which is paired with Tesla’s lithium-ion battery in South Australia, which is on track to make back almost a third of its construction costs in its first year. Photograph: David Gray/Reuters
The Tesla lithium-ion battery in South Australia is on track to make back a third of its construction costs in its first year of operation, new financial documents show.
The 100MW/129MWh battery was switched on in November and is paired with the Hornsdale windfarm, about 230km north of Adelaide.
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The French renewable energy company Neoen, which owns the battery, filed for IPO listing on the French stock exchange this month.
A 400-page document filed in support of the application shows the battery, which is the largest lithium-ion battery in the world, had a capital cost of €56m or A$90.6m and generated €8.1m, or A$13.1m, in revenue from network services in the six months to 30 June 2018.
Almost $2m of that was from its 10-year contract with the SA government to provide reserve capacity for the state’s electricity network, which is worth $4m a year.
The rest was from trading on the frequency and ancillary services market.
It also made €6.7m, or A$10.8, from the sale of stored electricity.
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The company said its success in partnering with Tesla to deliver the Hornsdale battery within 100 days of the contracts being signed – a promise made by Tesla founder and chief executive, Elon Musk, in a twitter exchange in March 2017 – had helped it win other contracts.
Australia is the largest market in terms of megawatt storage for the €2bn (A$3.2bn) company, which is attempting to raise €450m (A$728.3m) in capital through its IPO offer to increase its capacity from 2GW to 5GW.
Original From: https://www.theguardian.com/technology/2018/sep/27/south-australias-tesla-battery-on-track-to-make-back-a-third-of-cost-in-a-year
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