(Photo by Heisenberg Media via Flickr)
Billionaire Elon Musk has stepped up and offered to fix the power shortage crisis in South Australia. The founder and owner of electric car company, Tesla, has said his company can install a 100-300 megawatt battery storage system that will completely change the game in South Australia. And the best part? Elon Musk says if he can’t get it done in 100 days, he’ll do it for free.
The Challenge
In early March Lyndon Rive, Tesla’s vice-president for energy products, announced that Tesla would be able to install a 100-300 megawatt battery storage system that would solve the power shortages happening in South Australia. Rive continued and said that thanks to Tesla’s new Gigafactory in Nevada, the battery storage system could be achieved within 100 days. He assured the media that Tesla has the battery technology needed to address the power shortfall due to the Hazelwood power plant closure in Victoria, South Australia and the rolling blackouts. However, Rive was quick to point out that the solution, while possible, would still take some work. He said, “We don’t have 300 megawatts sitting there ready to go but I’ll make sure there are.”
Of course, people were skeptical. 100 days to solve the power shortage crisis on the other side of the world? Was Elon Musk and Tesla serious? Yes, they were. Mike Cannon-Brookes, an Australian working at a startup in Silicon Valley, tweeted to Elon Musk asking if he was serious about completing the project in 100 days. Musk replied, “Tesla will get the system installed and working 100 days from contract signature or it is free. That serious enough for you?” Mic drop by Elon Musk.
What’s the Problem?
The power shortages in South Australia have been causing major price hikes and blackouts across the state. Residents are, understandably, getting upset. Blackouts have been occurring in South Australia since September 2016 and have resulted in political tension across the country. The federal government blamed failing technology for the blackouts while the Australian Energy Market Operator said there were many causes behind the blackouts, including higher demand.
South Australia has been working to solve their power issues. The Australian Renewable Energy Agency recently approved a grant to Energy Australia in the amount of $450,000. The funds are to be used to investigate a pumped hydro energy storage project in the Spencer Gulf. This pumped hydro storage project could produce 100 megawatts with six to eight hours of power storage and is a smaller version of Tumut 3, Australia’s largest pumped hydro storage hydroelectric station with a storage capacity of 1500 megawatts. However, as the project is only in the investigation stages, it is unlikely that it would be completed anytime soon. Elon Musk’s 100 day plan is much more appealing to both residents of South Australia and energy companies.
Can Elon Musk Save the Day?
So now the big question remains, will Elon Musk and Tesla be able to solve South Australia’s power shortage crisis? And if they are able to solve it, can they do it in 100 days? While Tesla doesn’t have a 300 megawatt storage system ready to go, they have had success with a recent similar project. They completed the installation of an 80 megawatt grid-scale battery farm in southern California. The project took them 90 days and cost $100 million. A similar grid-scale battery storage system could be a lifesaver in Australia. It has the capacity to prevent power spikes, prevent blackouts and improve the reliability of the power network across the state.