Hornsdale Power Reserve

South Australia received 90 proposals and considered five projects to build a grid-connected battery to increase grid stability under adverse weather events.{{cite press release |url= http://www.aeol.com.au/databases/news/17/07/sagov_neoen_wind_farm_sa.html |title=Tesla to pair world's largest lithium ion battery with Neoen wind farm in SA |first=Jay |last=Weatherill |author-link=Jay Weatherill |publisher=Government of South Australia |date=7 July 2017 |access-date=9 October 2017 |archive-url= https://web.archive.org/web/20171010055210/https://www.premier.sa.gov.au/index.php/jay-weatherill-news-releases/7736-tesla-to-pair-world-s-largest-lithium-ion-battery-with-neoen-wind-farm-in-sa |archive-date=2017-10-10 |url-status=live}}{{cite web |last1=Parkinson |first1=Giles |title=South Australia swamped by 90 battery storage proposals |url=http://reneweconomy.com.au/south-australia-swamped-by-90-battery-storage-proposals-96681/ |website=RenewEconomy |language=en-AU |date=3 April 2017}} This has resulted in less use of gas-fired generators to provide grid stability.{{cite web |title=Power system strength |url=https://www.electranet.com.au/wp-content/uploads/2018/05/180515_ElectraNet_System-Strength_Fact-Sheet_WEB.pdf |publisher=ElectraNet |archive-url= https://web.archive.org/web/20190618040006/https://www.electranet.com.au/wp-content/uploads/2018/05/180515_ElectraNet_System-Strength_Fact-Sheet_WEB.pdf |archive-date=2019-06-18 |date=May 2018 |url-status=live}}

Elon Musk placed a wager that the battery would be completed within "100 days from contract signature", otherwise the battery would be free. Tesla had already begun construction, and some units were already operational by 29 September 2017, the time the grid contract was signed.{{Cite news|url=http://www.abc.net.au/news/2017-09-29/elon-musk-tesla-world-biggest-battery-reaches-halfway-mark/9001542

|title=Elon Musk: Tesla reaches halfway point of construction on 'world's biggest' battery

|first=Nick |last=Harmsen

|access-date=29 September 2017 |date=29 September 2017 |work=ABC News

|publisher=Australian Broadcasting Corporation

}}{{r|completes}} The battery construction was completed and testing began on 25 November 2017. It was connected to the grid on 1 December 2017.{{cite web

|url=https://www.theurbandeveloper.com/teslas-giant-battery-farm-ready-flick-switch/?subscribe=subscriber_no_lightbox

|title=Tesla's Giant Battery Farm Ready to Flick the Switch

|quote=The 100-megawatt battery installation has been built as promised by tech-billionaire Elon Musk within 100 days of the contract being signed back in September

|publisher=The Urban Developer

|date=29 November 2017 |access-date=30 November 2017

|archive-url= https://web.archive.org/web/20190327122926/https://www.theurbandeveloper.com/teslas-giant-battery-farm-ready-flick-switch/?subscribe=subscriber_no_lightbox |archive-date=2019-03-27 |url-status=live

}} The {{age in days|2017|9|29|2017|12|01}} days between grid contract and completion easily beat Musk's wager of "100 days from contract signature",{{r|tweet}}{{cite news|url=http://www.abc.net.au/news/2017-07-07/sa-to-get-worlds-biggest-lithium-ion-battery/8687268

|title=Elon Musk's Tesla to build world's biggest lithium ion battery to secure power for South Australia

|first1=Sarah |last1=Scopelianos |first2=Tom |last2=Fedorowytsch |first3=Sara |last3=Garcia

|date=7 July 2017 |newspaper=ABC News |access-date=12 July 2017

}}{{cite web

|url=http://www.abc.net.au/news/2017-07-07/what-is-tesla-big-sa-battery-and-how-will-it-work/8688992

|title=What is Tesla's SA battery and how will it be used?

|first=Nick |last=Harmsen

|newspaper=ABC News |date=7 July 2017 |access-date=9 October 2017

}} which started when a grid connection agreement was signed with ElectraNet on 29 September 2017,{{r|completes}} {{age in days|2017|3|10|2017|9|29}} days after Musk's offer on 10 March (in Australia).{{r|tweet}}

In November 2019, Neoen announced that it would increase the battery capacity by 50%.https://www.neoen.com/var/fichiers/20191119-neoen-mr-australia-hprx.pdf {{Webarchive|url=https://web.archive.org/web/20210927141918/https://www.neoen.com/var/fichiers/20191119-neoen-mr-australia-hprx.pdf |date=27 September 2021 }} {{Bare URL PDF|date=March 2022}} The expansion cost €53 million ($A82 million,{{cite web |last1=Parkinson |first1=Giles |title=Neoen aims for big batteries in every state following success of Tesla big battery |url=https://reneweconomy.com.au/neoen-aims-for-big-batteries-in-every-state-following-success-of-tesla-big-battery/ |website=RenewEconomy |archive-url= https://web.archive.org/web/20210316122413/https://reneweconomy.com.au/neoen-aims-for-big-batteries-in-every-state-following-success-of-tesla-big-battery/ |archive-date=16 March 2021 |language=en-AU |date=12 March 2021 |url-status=live |quote=the Hornsdale battery was the single most profitable asset in Neoen’s portfolio across Australia, Europe and the Americas, largely as a result of the key role it played, and the windfall it gained, from holding the South Australia grid together {in early 2020} during a lengthy “islanding” event}} whereas {{AUD|71 million}} had been expected), funded by {{AUD|15 million}} from the state government, {{AUD|8 million}} from ARENA and up to {{AUD|50 million}} in loans through the Clean Energy Finance Corporation.{{cite news |url=https://www.reuters.com/article/us-hornsdalepower-expansion-neoen/neoen-to-expand-worlds-largest-lithium-ion-battery-in-australia-idUSKBN1XT06T |title=Neoen to Expand World's Largest Lithium Ion Battery in Australia |first=Ambar |last=Warrick |location=Bengaluru |editor-first=Richard |editor-last=Pullin |work=Reuters |date=18 November 2019 |access-date=22 November 2019}}{{cite web |last1=Parkinson |first1=Giles |title=Tesla big battery adds new capacity and services on march to 100pct renewables grid |url=https://reneweconomy.com.au/tesla-big-battery-adds-new-capacity-and-services-on-march-to-100pct-renewables-grid-55121/ |website=RenewEconomy |language=en-AU |date=19 November 2019}}

The expansion was completed by Neoen on 2 September 2020,{{cite news |url=https://www.adelaidenow.com.au/news/south-australia/neoens-hornsdale-power-reserve-big-battery-upgrade-done-and-ready-to-keep-system-fired-up/news-story/18de4bec2d77f6e14e52ca5b9b1048e8 |date=2 September 2020 |access-date=1 October 2020 |title=Neoen's Hornsdale Power Reserve big battery upgrade done and ready to keep system fired up |first=Chris |last=Russell |newspaper=The Advertiser}} increasing its impact in the South Australia grid. The battery receives $4 million per year for essential grid security services.{{cite web |last1=Parkinson |first1=Giles |title=Revenue from Tesla big battery at Hornsdale falls by half in third quarter |url=https://reneweconomy.com.au/revenue-from-tesla-big-battery-at-hornsdale-falls-by-half-in-third-quarter-38383/ |website=RenewEconomy |archive-url= https://web.archive.org/web/20201109205652/https://reneweconomy.com.au/revenue-from-tesla-big-battery-at-hornsdale-falls-by-half-in-third-quarter-38383/ |archive-date=9 November 2020 |language=en-AU |date=9 November 2020 |url-status=live}}

It is owned{{cite web

|url=https://hornsdalepowerreserve.com.au/about-us/

|title=Hornsdale power reserve: about us

|quote=Neoen, the owner of the Hornsdale Power Reserve,...

|access-date=2018-04-12

|archive-date=28 June 2020

|archive-url=https://web.archive.org/web/20200628180036/https://hornsdalepowerreserve.com.au/about-us/

|url-status=dead

}} and operated by Neoen, with the state government having the right to call on the stored power under certain circumstances.{{cite news

|url=http://www.abc.net.au/news/2017-11-23/worlds-most-powerful-lithium-ion-battery-finished-in-sa/9183868

|title=Elon Musk's giant lithium ion battery completed by Tesla in SA's Mid North

|first=Nick |last=Harmsen

|newspaper=ABC News |date=24 November 2017

}} Phase one provided a total of {{convert|129|MWh}} of storage capable of discharge at {{convert|100|MW}} into the power grid, which was contractually divided into several parts, covering energy arbitrage, frequency control and stabilisation services. They included:{{cite web

|url=https://www.aemo.com.au/-/media/Files/Media_Centre/2018/Initial-operation-of-the-Hornsdale-Power-Reserve.pdf

|title=Initial operation of the Hornsdale Power Reserve Battery Energy Storage System

|publisher=Australian Energy Market Operator

|date=5 April 2018

}}{{Update inline|date=June 2020|reason=This figures here apply to the original 100 MW/129 MWh installation; they need to be updated to reflect the expansion.}}

1. 70 MW running for 10 minutes (11.7 MWh) is contracted to the government to provide stability to the grid (grid services){{cite web

| url =http://reneweconomy.com.au/tesla-big-battery-outsmarts-lumbering-coal-units-after-loy-yang-trips-70003/

| title =Tesla big battery outsmarts lumbering coal units after Loy Yang trips

| last =Parkinson

| first =Giles

| date =19 December 2017

| publisher =RenewEconomy

| access-date =19 December 2017

| quote =But in reality, the response from the Tesla big battery was even quicker than that – in milliseconds – but too fast for the AEMO data to record. Importantly, by the time that the contracted Gladstone coal unit had gotten out of bed and put its socks on so it can inject more into the grid – it is paid to respond in six seconds – the fall in frequency had already been arrested and was being reversed.

}} and prevent load-shedding blackouts{{cite web

| url =http://reneweconomy.com.au/tesla-big-battery-goes-full-discharge-100mw-first-time-37826/

| title =Tesla big battery goes the full discharge – 100MW – for first time

| last =Parkinson

| first =Giles

| date =14 December 2017

| website =RenewEconomy

| access-date =19 December 2017

}} while other generators are started in the event of sudden drops in wind or other network issues. This service reduced the cost of grid services to the Australian Energy Market Operator by 90% in its first 4 months.{{cite web|last1=Lambert|first1=Fred |title=Tesla's giant battery in Australia reduced grid service cost by 90%|url=https://electrek.co/2018/05/11/tesla-giant-battery-australia-reduced-grid-service-cost/ |website=Electrek|publisher=9to5 network|access-date=11 May 2018}}{{cite web |last1=Gheorghiu |first1=Iulia |title=South Australia's grid service costs slashed 90% by Tesla battery |url=https://www.utilitydive.com/news/south-australias-grid-service-costs-slashed-90-by-tesla-battery/523436/ |website=Utility Dive |archive-url= https://web.archive.org/web/20210220171527/https://www.utilitydive.com/news/south-australias-grid-service-costs-slashed-90-by-tesla-battery/523436/ |archive-date=20 February 2021 |date=14 May 2018 |url-status=live}}

1. 30 MW for 3 hours (90 MWh) is used by Neoen to store energy when prices are low and sell it when demand is high.{{cite web

|url=http://reneweconomy.com.au/explainer-what-the-tesla-big-battery-can-and-cannot-do-42387/

|title=Explainer: What the Tesla big battery can and cannot do

|date=10 July 2017 |publisher=RenewEconomy |access-date=12 October 2017

}}

On 14 December 2017, at 1:58:59 am, the Hornsdale Power Reserve (HPR) reacted when unit A3 at Loy Yang Power Station tripped. As its generators spun down over the next 30 seconds, the loss of its 560 MW of base power caused a dip in the system frequency. By 1:59:19, the frequency had fallen to 49.8 Hz, and triggered HPR's response, injecting 7.3 MW into the grid and effectively helping to stabilise the system before the Gladstone Power Station was able to respond at 1:59:27. This synchronverter reaction is a built-in feature, but had not previously been effectively demonstrated.{{r|loy-yang-trips}}

On 25 May 2021, HPR has reported a successful real-life test of its new “virtual machine mode” by demonstrating an inertial response from a small selection of trial inverters, following the grid disturbances created by events in Queensland. After an upgrade in 2022, the battery has 2,000 MegaWatt-seconds (MWs) of grid inertia, about 15% of the state's total grid requirement.{{cite web |title=Hornsdale Power Reserve: The First Big Battery to Deliver Inertia Services at Scale |url=https://www.energymatters.com.au/renewable-news/hornsdale-power-reserve-the-first-big-battery-to-deliver-inertia-services-at-scale/ |website=Energy Matters |archive-url=https://web.archive.org/web/20230317123554/https://www.energymatters.com.au/renewable-news/hornsdale-power-reserve-the-first-big-battery-to-deliver-inertia-services-at-scale/ |archive-date=17 March 2023 |language=en |date=29 July 2022 |url-status=live}}{{cite web |last1=Colthorpe |first1=Andy |title=Grid inertia measurement trial at Australia's biggest battery storage project |url=https://www.energy-storage.news/grid-inertia-measurement-trial-at-australias-biggest-battery-storage-project/ |website=Energy Storage News |date=25 April 2023}}

During two days in January 2018 when the wholesale spot price for electricity in South Australia rose due to hot weather, the battery made its owners an estimated {{AUD|1,000,000}} ({{USD|800,000}}) as they sold power from the battery to the grid for a price of around {{AUD|14,000}}/MWh.{{cite news

|url=https://futurism.com/teslas-australian-battery-shows-can-make-huge-profits/

|title=Tesla's Australian Battery Shows It Can Also Make Huge Profits

|first=Kyree |last=Leary

|website=futurism.com |date=2018-01-24 |access-date=2018-03-14

}} Based on the first six months of operation, the reserve is estimated to earn about {{AUD|18 million}} per year.{{cite news

|title=Tesla big battery: It earned a lot more money in second quarter

|first1=Steven |last1=Parker |first2=Bruce |last2=Mountain

|date=3 August 2018 |publisher=RenewEconony

|url=https://reneweconomy.com.au/tesla-big-battery-it-earned-a-lot-more-money-in-second-quarter-80892/

}} (This is a third-party estimate, based on spot energy prices; it is possible that the HPR has contracted to provide power at a lower price, in exchange for a more certain income stream.)

{{external media|image1=[https://www.aer.gov.au/wholesale-markets/wholesale-statistics/quarterly-local-fcas-costs-by-services-south-australia SA FCAS costs by services 2016-2020]}}

After six months of operation, the Hornsdale Power Reserve was responsible for 55% of frequency control and ancillary services in South Australia.{{r|cost}} The battery usually arbitrages 30 MW or less, but in May 2019 began charging and discharging at around 80 MW and for longer than usual, increasing wind power production by reducing curtailment.{{cite web |last1=Mazengarb |first1=Michael |title=Wind energy sets new records as strong investment and windy weather combine |url=https://reneweconomy.com.au/wind-energy-sets-new-records-as-strong-investment-and-windy-weather-combine-54005/ |website=RenewEconomy |language=en-AU |date=30 May 2019}}{{cite web |last1=Eldridge |first1=Geoff |title=NLOG: Hornsdale Power Reserve Battery operation on Tue 28 May 2019 |url=http://nemlog.com.au/nlog/hornsdale-power-reserve-battery-operation-on-tue-28-may-2019/ |website=nemlog.com.au |date=30 May 2019}} FCAS is the main source of revenue.{{cite web |title=Quarterly Energy Dynamics (QED) |url=https://aemo.com.au/energy-systems/major-publications/quarterly-energy-dynamics-qed |website=aemo.com.au |date=22 October 2020 |access-date=27 October 2020 |pages= 21–22 |language=en}}{{cite web |title=Big battery announcements could see storage pricing 'cannibalise' itself |url=https://www.pv-magazine-australia.com/2021/01/26/big-battery-announcements-could-see-storage-pricing-cannibalise-itself/ |website=pv magazine Australia |archive-url= https://web.archive.org/web/20210205072657/https://www.pv-magazine-australia.com/2021/01/26/big-battery-announcements-could-see-storage-pricing-cannibalise-itself/ |language=en-AU |last1=Peacock |first1=Bella |archive-date=5 February 2021 |date=26 January 2021 |quote=[Frequency Control Ancillary Services] FCAS markets are a large driver of revenues for large scale battery assets in the NEM … last calendar year FCAS revenues accounted for more than 96% for Hornsdale Power Reserve (c.f. 83% in CY19) |url-status=live}} When the Heywood interconnector failed for 18 days in January 2020, HPR provided grid support while limiting power prices.{{cite web |last1=Peacock |first1=Bella |title=Australian assets prove pivotal for Neoen's strong 2020 results |url=https://www.pv-magazine-australia.com/2021/02/19/australian-assets-prove-pivotal-for-neoens-strong-2020-results/ |website=pv magazine Australia |language=en-AU |date=19 February 2021}} This event was the main contributor to Neoen's €30 million ($A46.3 million) operating profit from Australian battery storage in 2020.

In 2022, HPR started providing an estimated 2,000 MWs of inertial response to the grid. Such services usually being provided by coal and gas generators, HPR was the first big battery in the world to provide such services, and particularly useful given South Australia's high renewable penetration.{{Cite web |date=2022-07-27 |title=Hornsdale big battery begins providing inertia grid services at scale in world first |url=https://www.pv-magazine-australia.com/2022/07/27/hornsdale-big-battery-begins-providing-inertia-grid-services-at-scale-in-world-first/ |access-date=2023-07-14 |website=pv magazine Australia |language=en-AU}}

By the end of 2018, it was estimated that the Power Reserve had saved {{AUD|40 million}} in costs. In 2019, grid costs were reduced by $116 million due to the operation of HPR. Almost all of the savings delivered by the Hornsdale battery came from its role in frequency and ancillary control markets, where HPR reduced costs by 91% from $470/MWh to $40/MWh;{{cite web|title=Year 2 Technical and Market Impact Case Study|url=https://www.aurecongroup.com/-/media/files/downloads-library/thought-leadership/aurecon-hornsdale-power-reserve-impact-study-2020.pdf |publisher=Aurecon|quote=HPR is modelled to have reduced the total Contingency FCAS cost by approximately $80M, and the total Regulation FCAS cost by approximately $36M, for a total NEM cost reduction of approximately $116M}} while providing a faster response of 100 ms vs 6000 ms with previous Contingency FCAS agreements.https://www.aurecongroup.com/-/media/files/downloads-library/thought-leadership/aurecon-hornsdale-power-reserve-impact-study-2018.pdf {{Bare URL PDF|date=August 2024}} {{asof|2024}}, HPR is the largest battery in Australia with grid-forming abilities.{{cite web |title=The race to protect "heartbeat" of the grid as wind and solar replace coal and gas |url=https://reneweconomy.com.au/the-race-to-protect-heartbeat-of-the-grid-as-wind-and-solar-replace-coal-and-gas/ |website=RenewEconomy |language=en-AU |date=21 June 2024}}

On September 23, 2021, the Australian Energy Regulator sued Neoen SA, saying the Hornsdale Power Reserve did not provide backup power during four months in 2019 for which it had received payment.{{Cite news|last=Paul|first=Sonali|date=2021-09-23|title=Australia sues Neoen for lack of power from its Tesla battery reserve|language=en|work=Reuters|url=https://www.reuters.com/business/energy/australia-sues-neoen-lack-power-its-tesla-battery-reserve-2021-09-23/|access-date=2021-09-24}} The company was ultimately fined $900,000.{{Cite web |last=Mobrici |first=Alyse |date=2022-09-25 |title=HPR penalised $900,000 for contraventions relating to provision of back-up services to NEM {{!}} CommBar Matters |url=https://commbarmatters.com.au/2022/09/26/hpr-penalised-900000-for-contraventions-relating-to-provision-of-back-up-services-to-nem/ |access-date=2023-07-14 |language=en-AU}}

• Battery storage power station
• List of energy storage projects in South Australia

{{Reflist}}

• [https://arena.gov.au/projects/hornsdale-power-reserve-upgrade/ Hornsdale Power Reserve Upgrade]
• [https://energypost.eu/tesla-big-battery-defies-sceptics/ energypost.eu – Tesla big battery defies sceptics, sends industry bananas over performance]
• [http://nemlog.com.au/nem/unit/HPRG1/ Today's generation]. [http://nemlog.com.au/nem/unit/HPRL1/ Today's charging].

{{Energy in South Australia}}

Category:Energy storage projects

Category:Electric power infrastructure in South Australia

Category:Mid North (South Australia)