New big battery 60% cheaper

Since you're prolly sick of seeing pictures of batteries and wind turbines,
here's an image of Geelong's waterfront.

From PV Magazine

The Australian city of Geelong, Victoria, has unveiled plans for a AUD 300 million ($185.5 million) battery system. French renewables developer Neoen submitted the application for a planning permit for the project, which has dubbed [it] the “Victorian big battery.” 

The 600 MW battery storage facility will provide fast frequency response services to the National Electricity Market (NEM) and serve as reserve to augment power supplies in Victoria, while also providing improved grid reliability, the company said in its application.

“Such energy storage facilities can reduce spot price volatility and protect the grid from network disturbances thus improving reliability and potentially reducing power costs,” the company added.

As the developer of the world’s largest operating battery – the 100MW/129MWh Tesla big battery in South Australia, known as the Hornsdale Power Reserve – Neoen has enjoyed a significant surge in revenues. Frequency control ancillary services (FCAS) provided by the Tesla Big Battery, which is now set for a 50% expansion, contributed most of the 56% jump in revenue banked by Neoen in the final quarter of last year.

In its first year of operation, the Tesla Big Battery saved almost AUD 40 million in grid-stabilization costs. But perhaps the project’s most significant contribution is that it has raised the profile of energy storage and has demonstrated its unique capabilities.  

[Read more here]

The first "big battery" in South Australia—built less than three years ago cost at least US$50 million for 129 MWh of storage.  This one will cost US$185 million for 400 Tesla Megapacks, each of which can store up to 3 MWh of power.  At 3 MWh each, that is nearly 10 times as much storage for 3.7 times the price.  To put it another way, the first big battery cost (at least) $387K per MWh, the new one will cost $154K/MWh, or 60% less.  A 60% cost decline in less than three years!  And it seems very likely that this decline will be matched over the next three years. This should send shivers up the spine of every coal executive. 

Victoria's average electricity demand is roughly 5000 MW.  So this battery could provide for 12% of demand for two hours.  This is phenomenal.  In another 3 years, we'll be able to add an even bigger big battery, allowing us to go to 90% renewables in Victoria.  The naysayers have been adamant that storage will be too expensive for us to use it to "firm" variable renewable supply.  They have been wrong.