Tesla’s 129 megawatt-hour (MWh) Hornsdale Power Reserve (HPR) battery in South Australia continues to pull new tricks out of its hat and raking in the savings for South Australian residents along the way.
Renew Economy estimates that the battery saved a jaw-dropping $5.7 million in its second quarter of operation based on just the 30 megawatts (MW) of capacity it is trading, delivering a gross margin of $8.9 million.
Included in this is the $3.2 million saved in its first quarter of operation as estimated by Renew Economy, providing a nice track record of consistent savings that other utilities can look to for the savings potential of similar systems in their districts.
The savings were estimated using the same analysis that the Australian Energy Market Operator (AEMO) used in the first quarter, but with a few variances that resulted in a higher estimate for Frequency Control and Ancillary Services.
In the first quarter, the battery was largely utilizing the system as you would expect – charging up at night and discharging in the evening.
In the second quarter, the patterns started to shift. The HPR still charges up primarily at night but has added a morning discharge period that presumably absorbs high grid usage from consumers starting their morning routines before solar production for the day starts ramping up.
It is important to note that the HPR is basing its actions on grid spot pricing and not on manual triggers. Following pricing allows the battery to fill in where grid operators and electricity generators need it the most, as dictated by pricing.
Currently, only 30% of the system’s 100 MW capacity is being utilized for trading, leaving an open question on the table about the potential revenue generated with the full capacity of the system.
Reference- Cleantechnica, HPR website, Renew Economy