Tesla Battery Revenue Increases; Neoen Eyes More Battery Storage Investments

The Tesla big battery situated in South Australia has seen a significant rise in revenues and its owner, French company Neoen, is eyeing for more battery storage investments in Australia.

The Hornsdale Power Reserve, which started operations in December 2017, has seen a revenue increase of 20 percent in the first three months of the present year amounting to $A6.8 million. This, as Renew Economy reported, is the outcome of having stronger frequency control and arbitrage markets.

The battery storage is under a fixed contract with the South Australia government to provide emergency grid services and gets approximately $4 million annually as payment. The report also mentioned that the battery also makes money from the frequency control market and by acquiring and selling electricity on the spot market.

Last year, the big battery delivered around $29 million in revenues and $22 million in profits, posting a reasonable operating margin of around 75 percent. The Australian Energy Market Operator (AEMO) report suggests that the operating profits for the installation are estimated at around $5 million for the first quarter alone.

In a statement, Neoen said, “In view of HPR’s operating and financial performance, the group is actively continuing with its efforts to develop new capacity in the markets in which it operates.”

The French company is presently establishing, using Tesla technology again, a 20MW/34MWh battery at the Bulgana renewable energy hub in Victoria. Its main objectives include supporting a neighbouring wind farm and deliver 100 percent renewable energy to the future largest vegetable greenhouse, operated by Nectar Farms, in Australia.

In a recent call with investors, Neoen Chairman Xavier Barbara stated, “We are still quite bullish for Australia. That is true for wind, it is true for solar, and it is especially true for storage, we are well-positioned. We will have more good years in Australia in storage.”

According to the AEMO data, batteries get the upper hand of making money out of arbitrage in Australian markets than larger pumped hydro plants and have also posted a remarkable share of the frequency and ancillary services market.

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