Energy

Tesla’s Powerpack battery farm starts killing fossil fuel backup plants in Australia

Published

6 years ago

October 5, 2018

Simon Alvarez

Since going online last year, Tesla’s Powerpack farm in South Australia has established a reputation for being a quick, clean, and efficient backup to the region’s beleaguered energy grid. As the big battery continues to prove its critics wrong, the Australian Energy Market Operator (AEMO) has announced that it would no longer be needing the services of several fossil fuel-powered plants, which supported the grid prior to the arrival of the Tesla Powerpack Farm.

AEMO’s recent initiative closes the page on a three-year-old requirement for 35 MW of Frequency Control Ancillary Services (FCAS) to be provided in South Australia during instances when the state’s grid is at risk of separating from the national grid, ensuring that the state’s grid could operate safely and securely by itself. In an announcement on Thursday, the AEMO acknowledged that the energy landscape in the region has changed during the past year.

“The operation of SA has changed significantly over the past 12 months. Synchronous unit requirements (for SA system strength) and the installation of the Hornsdale battery have ensured regulation FCAS is more readily available post-islanding of SA. Hence this requirement is no longer considered necessary,” AEMO noted.

Prior to the installation of the Tesla Powerpack farm, the local providers of FCAS turned the South Australian energy grid into a booming business. The providers, which utilize fossil fuel-powered plants, kept the price of FCAS in the state extremely high, rising nearly 100-fold to the market cap of $14,000/MWh. At one point, the cost of South Australia’s FCAS rose to around $6 million a day, and considering the strain on the region’s energy grid; the state ended up paying more than $100 million in 2016 and 2017.

The Tesla big battery, officially named as the Hornsdale Power Reserve, disrupted the market when it went online. With the Powerpack farm present, gas generators were unable to dictate the price of backup energy services. The battery farm also proved that it was quicker, more flexible, more accurate, and even more cost-effective than fossil fuel-powered plants.

The Powerpack farm’s capabilities were put to the test in late August, after twin lightning strikes resulted in the failure of two major transmission lines linking Queensland and New South Wales. The results of the lightning strikes were notable — the South Australia and Queensland grids were separated and there were widespread power losses in NSW, Tasmania, and Victoria. In South Australia, there was no loss of power, and no failure of generators due to the fast response of the Tesla Powerpack farm.

The feats of the Horsndale Power Reserve has triggered an energy movement in Australia, becoming the frontliner in AEMO’s contingencies against major faults and disturbances to the grid. New battery-based projects are currently underway in several other areas, such as Dalrymple North in South Australia, at the Ganawarra solar farm, and a Ballarat network junction in Victoria. In a statement to Renew Economy, Christian Schaefer, AEMO’s head of system capability, noted that the region’s move away from fossil fuel-powered backup plants is a step in the right direction.

“This is a good news story. The work that our engineers in the AEMO team have done shows that we can continue to operate South Australia in a stable and secure manner. Hornsdale has had a significant impact on the South Australia system, and we have got new batteries coming online with Victoria and South Australia. That is really positive. It shows that all parts of the industry — networks, generators, the renewable sector, battery providers and regulators — are getting behind this and showing an interest in what has been done,” he said.

Tesla Energy does not make as many headlines as the company’s electric car business, but the business is in a constant process of growth. In a recent statement, billionaire investor Ron Baron noted that he expects Tesla’s electric car and energy business to be equally worth $500 billion each by 2030. Tesla CTO JB Straubel, for his part, has previously teased that Tesla Energy is indeed going after backup peaker plants.

“I think what we’ll see is we won’t build many new peaker plants, if any. Already what we’re seeing happening is the number of new ones being commissioned is drastically lower, and batteries are already outcompeting natural gas peaker plants,” Straubel said.

Simon Alvarez

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Tesla Energy shines with substantial YoY growth in deployments

Published

2 hours ago

April 2, 2025

Joey Klender

Credit: Tesla Megapack

Tesla Energy shined in what was a weak delivery report for the first quarter, as the company’s frequently-forgotten battery storage products performed extraordinarily well.

Tesla reported its Q1 production, delivery, and deployment figures for the first quarter of the year, and while many were less-than-excited about the automotive side, the Energy division performed well with 10.4 GWh of energy storage products deployed during the first quarter.

This was a 156 percent increase year-over-year and the company’s second-best quarter in terms of energy deployments to date. Only Q4 2024 was better, as 11 GWh was recorded.

Tesla Energy is frequently forgotten and not talked about enough. The company has continued to deploy massive energy storage projects across the globe, and as it recorded 31.5 GWh of deployments last year, 2025 is already looking as if it will be a record-setting year if it continues at this pace.

Tesla Megapacks to back one of Europe’s largest energy storage sites

Although Energy performed well, many investors are privy to that of the automotive division’s performance, which is where some concern lies. Tesla had a weak quarter for deliveries, missing Wall Street estimates by a considerable margin.

There are two very likely reasons as to why this happened: the first is Tesla’s switchover to the new Model Y at its production facilities across the globe. Tesla said it lost “several weeks” of production due to the updating of manufacturing lines as it rolled out a new version of its all-electric crossover.

Secondly, Tesla could be facing some pressure from pushback against the brand, which is what many analysts will say. Despite the publicity of attacks on Tesla drivers and their vehicles, as well as the company’s showrooms, it would be safe to assume that we will have a better picture painted of what the issue is in Q2 after the company reports numbers in July.

New Tesla Model Y was a best-seller in China in March 2025

If Tesla is still struggling with lackluster delivery figures in Q2 after the Model Y is ramped and deliveries are more predictable and consistent, we could see where the argument for brand damage is legitimate. However, we are more prone to believe the Model Y, which accounts for most of Tesla’s sales, and its production ramp is likely the cause for what happened in Q1.

In what was a relatively bleak quarter, Tesla Energy still shines as the bright spot for the quarter.

Energy

Tesla lands in Texas for latest Megapack production facility

Published

4 weeks ago

March 5, 2025

Joey Klender

(Credit: Tesla)

Tesla has chosen the location of its latest manufacturing project, a facility that will churn out the Megapack, a large-scale energy storage system for solar energy projects. It has chosen Waller County, Texas, as the location of the new plant, according to a Commissioners Court meeting that occurred on Wednesday, March 5.

Around midday, members of the Waller County Commissioners Court approved a tax abatement agreement that will bring Tesla to its area, along with an estimated 1,500 jobs. The plant will be located at the Empire West Industrial Park in the Brookshire part of town.

Brookshire also plans to consider a tax abatement for Tesla at its meeting next Thursday.

The project will see a one million square-foot building make way for Tesla to build Megapack battery storage units, according to Covering Katy News, which first reported on the company’s intention to build a plant for its energy product.

CEO Elon Musk confirmed on the company’s Q4 2024 Earnings Call in late January that it had officially started building its third Megapack plant, but did not disclose any location:

“So, we have our second factory, which is in Shanghai, that’s starting operation, and we’re building a third factory. So, we’re trying to ramp output of the stationary battery storage as quickly as possible.”

Tesla plans third Megafactory after breaking energy records in 2024

The Megapack has been a high-demand item as more energy storage projects have started developing. Across the globe, regions are looking for ways to avert the loss of power in the event of a natural disaster or simple power outage.

This is where Megapack comes in, as it stores energy and keeps the lights on when the main grid is unable to provide electricity.

Vince Yokom of the Waller County Economic Development Partnership, commented on Tesla’s planned Megapack facility:

“I want to thank Tesla for investing in Waller County and Brookshire. This will be a state-of-the-art manufacturing facility for their Megapack product. It is a powerful battery unit that provides energy storage and support to help stabilize the grid and prevent outages.”

Tesla has had a lease on the building where it will manufacture the Megapacks since October 2021. However, it was occupied by a third-party logistics company that handled the company’s car parts.

Energy

Tesla Energy had a blockbuster 2024

Published

3 months ago

December 31, 2024

Simon Alvarez

Credit: Tesla

Tesla Energy has become the undisputed dark horse of the electric vehicle maker. This was highlighted by Tesla Energy’s growing role in the company’s overall operations in the past quarters.

And as per Tesla’s year-end milestone posts on X, Tesla Energy had a blockbuster 2024.

Tesla Energy’s 2024 milestones:

As per Tesla on its official social media account on X, the company has hit over 800,000 Powerwalls installed worldwide.
From this number, over 100,000 Powerwall batteries have been enrolled in virtual power plant (VPP) programs.
The Powerwall 3 has officially been launched in the United States, Canada, Puerto Rico, the U.K., Germany, Italy, Australia, and New Zealand.
The Tesla Megapack hit over 22 GWh in operation across more than 60 countries across the globe.
The Lathrop Megafactory, which produces the Megapack, has been ramped to 40 GWh per year.
The Lathrop Megafactory has also produced its 10,000th Megapack battery.
The Shanghai Megafactory was completed in just seven months, and it is ready to start Megapack production in Q1 2025.

Hit 800k Powerwalls installed worldwide

Also:
– Over 100k Powerwalls are now enrolled in VPP programs

– Launched Powerwall 3 in the US, Canada, Puerto Rico, UK, Germany, Italy, Australia & New Zealand

– Megapack hit 22+ GWh in operation across 60+ countries

– Ramped… pic.twitter.com/bE88DpeyTg
— Tesla (@Tesla) December 31, 2024

Powerwall owners’ 2024 impact:

As per Tesla Energy, Powerwall owners generated a total of 4.5 TWh of solar energy globally in 2024. This was equivalent to powering a Model 3 for more than 17 billion miles.
A total of 1.1 TWh of energy was stored in Powerwalls in 2024. This protected homes from over 5.8 million outages during the year.
Tesla’s Storm Watch feature for Powerwall batteries covered 2.8 million severe weather events over the year.
Powerwall owners saw collective savings of over $800 million on utility bills.
Virtual Power Plants contributed over 2.2 GWh of power to the grid. This reduced the need for 2,200 metric tons of fossil fuel peaker plant emissions.