By installing $25 million worth of battery storage within 100 days, and offering it for free if he missed the target, Tesla Inc boss Elon Musk on Friday offered to save Australia’s most renewable-energy dependent state from blackouts.
Fears of more outages across the national electricity market due to tight supplies were stoked and a blackout that left industry crippled for up to two weeks was witnessed though a string of power outages in the state of South Australia, and Musk’s offer comes amidst this chaos in the region.
The Australian government reacted by saying that it could consider backing such a battery roll out by Tesla even though the Tesla boss made the offer on social media.
“The government stands ready through ARENA and the CEFC to work with companies with serious proposals to support the deployment of more storage,” Environment and Energy Minister Josh Frydenberg told the media.
CEFC is the Clean Energy Finance Corp and ARENA is the Australian Renewable Energy Agency.
He would be willing to line up funding and political support if Tesla could supply batteries that would solve South Australia’s problems, said Mike Cannon-Brookes, the co-founder of Australian software maker Atlassian Corp, on social media and Musk made the offer in response to that comment on social media.
Musk responded by tweeting: “Tesla will get the system installed and working 100 days from contract signature or it is free. That serious enough for you?”
Implying a price of $25 million for the battery packs, Musk quoted a price of $250 per kilowatt hour for 100 megawatt hour systems.
“You’re on mate. Give me 7 days to try and sort out politics & funding,” tweeted Cannon-Brookes.
He said he was eager to get the plan off the ground and added that he was inundated with calls on Friday after the social media exchange.
“My phone hasn’t stopped buzzing. The support is flooding in, both from individuals in terms of ‘Hell yes!’ and from corporates who are asking: ‘Can we buy power? Can we contribute dollars?’,” Cannon-Brookes told the media.
This week, the world’s top market for rooftop solar – Powerwall 2 was launched by Tesla in Australia. But as the country grows more reliant on intermittent wind and solar power, in order to help ensure reliable power supplies in the region, battery storage is just one of several options the government is looking at.
“We have been talking with a number of large-scale battery providers about potential storage solutions, including in South Australia. To the extent Tesla is interested, we’ll also talk with them,” Clean Energy Finance Corp Chief Executive Oliver Yates was quoted in the media as saying.
In order to provide back-up electricity for wind and solar and avert blackouts, Australia desperately needed more gas for power stations within the next two years, Australia’s energy market operator said this week after a record-breaking summer.
(Adapted from Reuters)









