The Australian Energy Regulator or AER is reportedly suing the French operator of the Tesla Inc TSLA made “Big Battery” for not providing essential services for maintaining the stability of the power grid.
What Happened: The regulator has filed proceedings against the Big Battery also known as the Hornsdale Power Reserve in an Australian Federal Court, the Sydney Morning Herald reported.
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The Big Battery, operated by French renewable company Neoen S.A. NOSPF, allegedly failed to provide “frequency control ancillary services” — services required to maintain safe operations of the grid post power disruptions in 2019, as per the Herald.
“[The Australian Energy Market Operator or AEMO] relies on accurate information and compliance with offers and dispatch instructions to ensure it can effectively [stabilize] frequency deviations,” said Australian Energy Regulator Chair Clare Savage, the Herald reported.
Neon Australia Managing Director Louis de Sambucy reportedly claimed that the Big Battery had delivered on high expectations repeatedly since it began operations in 2017 “proving itself to be a critical component of the South Australian electricity network.”
Why it Matters: Elon Musk-led Tesla built the power storage facility in remote South Australia in 2017. The facility is coupled with a wind farm, the Herald noted.
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The 150-megawatt battery with 193 megawatt-hours storage has helped mitigate intermittency and manage increased demand during peak periods of strain on the grid. Big batteries store excess energy when it is generated during favorable conditions through renewable means and then release the stored energy during peak usage periods.
The Australian energy regulator’s action comes as Neoen is facing delays with the biggest battery in Australia — the 450 megawatt-hour Victoria Big Battery following a fire at one of its Tesla Megapacks, as per a Reuters report.
That Big Battery was reportedly slated to be turned on in December, just in time for the Australian summer.
Meanwhile, Tesla’s Megapacks are being used in the United Kingdom’s largest energy storage project at Clay Tye in the Southeast of England.
Price Action: On Wednesday, Tesla shares closed 1.7% higher at $751.94 in the regular session and rose 0.35% in the after-hours trading.
Photo: Courtesy of Tesla
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