The state government of South Australia is enlisting the help of Tesla to connect 50,000 solar-powered homes in order to create the world’s largest “virtual power plant.”
South Australia has suffered from blackouts in recent years amid fears of a looming energy crisis. Last year, Tesla CEO Elon Musk claimed he could help solve the problem by building a giant battery farm within 100 days.
The plan involves installing a 5kW solar panel system and a Tesla Powerwall 2 battery on public housing properties across the state over the next four years, creating the world’s largest “virtual power plant.”
South Australia is already home to world’s biggest battery in an Elon Musk-driven project to provide electricity for more than 30,000 homes. The state government has since been looking for more ways — particularly through renewables — to address its energy woes after an “unprecedented” storm caused a state-wide blackout in 2016.
Under the new plan, a network of solar panels linked to rechargeable batteries will be provided free to households and financed by the sale of excess electricity generated by the network, the government said.
“My government has already delivered the world’s biggest battery, now we will deliver the world’s largest virtual power plant,” state Premier Jay Weatherill said in a statement.
“We will use people’s homes as a way to generate energy for the South Australian grid, with participating households benefitting with significant savings in their energy bills.”
The initiative is expected to lower household electricity bills by 30 percent, according to the consultancy firm Frontier Economics.
Tesla said in a statement to AFP that the virtual power plant would have 250 megawatts of solar energy and 650 megawatt hours of battery storage.
At key moments, the virtual power plant could provide as much capacity as a large gas turbine or coal power plant.
“South Australia is developing a 21st Century power system ahead of anybody else,” said Danny Price, managing director of Frontier Economics.
“It really is leading the way in terms of the way in which a kind of modern power system looks like.”
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