Large energy storage systems in southern Australia have reduced electricity costs by 90 %

The giant Powerpack energy storage system that Tesla has built in southern Australia has been in operation for more than six months, and we have recently seen a huge impact on the local energy market, according to foreign media reports.

According to a new report, the Tesla facility has significantly reduced the cost of local energy network services and has captured most of the market share of FCAS in southern Australia.

In general, when an accident occurs or the power grid needs to maintain a power outage during this period is called FCAS, energy operators will respond to power shortages during the FCAS period through large, costly gas generators and steam turbines. During this period, the cost of electricity per megawatt was as high as 14,000 US dollars.

Tesla's 100MW/129MWhPowerpack project in southern Australia can provide cheaper, faster, and greener services through energy storage systems.

The energy storage system is reported to be very efficient, earning $1 million in January for only a few days of service. But Tesla said last month that its revenues were not as high as expected because the system did not take into account the speed and loss of power that Powerpack was running into the grid.

The system has clearly influenced local energy market patterns. According to Australian energy operators, the system is faster, more accurate and more valuable than traditional steam turbines, according to reports released last month.

Mckinsey and partner godartvan gendt recently released the latest data at this week's energy week meeting in Melbourne, Australia, saying that Tesla's Powerpack project already accounts for 55 % of service during the fCAS(no power supply) period, and costs have been reduced by 90 %.

It is reported that southern Australia is the only region during this period during the FCAS cost reduction. Some estimate that in just a few months, this energy storage system has saved more than 30 million U.S. dollars.

LaraOlsen, business development manager of Tesla Energy, also attended the meeting. She said that the thermal power plant needs to bid for FCAS based on the fuel cost at that time. The price is very unstable. Tesla's energy storage system is known for its stability and low price.

After the success of the project in southern Australia, the future will lead to a significant increase in global demand for Tesla fixed energy storage system services.

Tesla's Powerpack was awarded another bid to deploy another large energy storage project for Australia after receiving $25 million in funding, according to previous media reports.

Tesla now has a plan of its own to build a virtual power plant in Australia those will power 50000 homes, meaning a larger energy storage system in the future.

In Shangzhoutesila's first-quarter earnings call, chief executive Elon Musk even hinted that Tesla would soon start deploying a new GWh level project.

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