Contents Project overviewProject DetailsContextProject Timeline Contractual StructureBattery TechnologyMarket ImpactRegulatory Implications Project overview The Hornsdale Power Reserve (HPR) is the world s largest lithium-ion battery. The AUD 90 million[1] grid-connected 100 MW Tesla Powerpack system (the Battery) is located about 15 kilometres north of Jamestown, in South Australia. Developed, owned and operated by Neoen, a French renewable energy company, the Battery s purpose is to contribute to the stabilisation and security of the South Australian electricity system, to further support the integration of renewable energy in South Australia, and to assist in preventing load-shedding events[2]. In addition to successfully supporting the security of electricity supply in South Australia, the Battery has also had the effect of reducing the cost of electricity grid stabilisation. The speed and accuracy with which the Battery can respond to changes in frequency has made it a significant competitor in the grid stability market, which has traditionally been dominated by conventional gas-fired generators. This increase in competition has resulted in a 57% cost saving (equivalent to approximately AUD 33 million) for electricity grid stabilisation services from Q4 2017 to Q1 2018, creating the potential for consumers to benefit from reduced power prices. Project Details It is the world s most powerful battery; at the time of commissioning, the next largest was an 80 MW Tesla installation in Ontario, California. The Battery is helping to manage summertime peak load and reduce intermittencies and has improved the security of South Australia s electrical infrastructure. The Battery can respond to contingency events (which result in changes in electrical frequency) much faster than any conventional generator; it has a response time of a fraction of a second, compared to minutes for a gas or steam turbine, for example. It has the potential to prevent 200 MW of loadshedding in South Australia during a contingency event, such as generator failure[3]. It has provided greater competition in the grid stabilisation services market:- It was the first time regulation frequency control ancillary services (FCAS) were offered by a technology other than conventional synchronous generation, such as coal and gas plants, in Australia s electricity market[4].- The cost of grid stabilisation services was 57% (AUD 32.7 million) lower in Q1 2018 than in Q4 2017, with a key driver being
