Big battery in Australia proves profitable as Neoen recovers capital costs in just two years

first_img FacebookTwitterLinkedInEmailPrint分享Renew Economy:It’s taken just a little over two years for the Tesla big battery, officially known as the Hornsdale Power Reserve, to re-coup in revenue the cost of construction of what remains the world’s biggest lithium ion battery.Neoen, the French-based owner and operator of the Tesla big battery at Hornsdale revealed on Thursday (Paris time) that the installation recorded five-fold increase in revenue in the first quarter underpinned a 65 percent boost in first quarter revenue for the group as a whole.The huge revenue boost from battery storage was the result of unusual – and likely unrepeatable – conditions that occurred when a tornado tore down the main transmission link between Victoria and South Australia in late January. That required the Hornsdale, the biggest lithium-ion battery storage facility in the world, and other two smaller big batteries in the state – Lake Bonney and Dalrymple North – to play critical roles in managing system security in South Australia which was forced to operate as an effective energy “island” for nearly three weeks. The intervention – mandated and supervised by the Australian Energy Market Operator – resulted in a revenue increase from storage operations to €21.6 million ($A36.2 million) in the first quarter of 2020, compared to €4.2 million in the first quarter of 2019. A small fraction of this revenue came from other small storage facilities operated by Neoen.The significance of this number is that the Tesla big battery at Hornsdale earned more revenue in the first quarter than it did in all of last year, when it recorded a 14 per cent rise in annual revenue to €20.5 million ($A33.2 million). It also means that total revenue from the Hornsdale battery has already exceeded its construction cost (around $A96 million) in little more than two years since it began operations in late 2017. At least half of that will be reflected as net income, indicating a phenomenal return on investment for the Hornsdale big battery.At the same time, the Hornsdale battery is estimated to have delivered savings of at least $150 million to consumers by keeping electricity and system costs below where they would have been in its absence, when the market was totally controlled by the state’s existing gas operators.[Giles Parkinson]More: Tesla big battery recoups cost of construction in little over two years Big battery in Australia proves profitable as Neoen recovers capital costs in just two yearslast_img