South Australia’s giant lithium ion battery, provided by Tesla and owned by Neoen has sold $17 million worth of energy units in its first 6 months of operation. The revenue details were publicised as part of Neoen’s prospectus ahead of its initial public offering on the Paris stock exchange.
The power reserve, located in Hornsdale (220km north of Adelaide) can currently supply power for up to 30 000 homes and is the largest lithium ion batter in the world. It was brought in to assist with the black out problems experienced by the state and has had a significant impact on South Australia’s power stability.
Neoen’s prospectus presented the costs incurred for the battery of 56 million euros, returning 14.8 million euros within its first 6 months.
Electrek magazine reported on the project, stating:
“The cost of operation are not made clear in the filings, but we would assume that they are fairly low, which would make the return on investment extraordinary quick for the massive project,”
If the numbers presented by Neoen are correct, they present an incredibly favourable economic environment for stationary storage markets and lithium as a whole. Stationary Storage systems are effectively large battery banks which store surplus power from the grid for use during peak demand periods.
Experts believe that the stationary storage market will grow to 87Gwh by 2027, compared to zero in 2010.
“The price has come down for these cells so dramatically over the last eight years that it is now affordable to use batteries for grid storage,” said Mr Jaffe, , Cairn Energy Research Advisors managing director.
Other energy players such as Tesla’s Elon Musk, believe the increase in stationary storage “is going to grow exponentially”.