Whether the 50,000- household strong solar + Powerwall 2 battery based virtual power plant will go ahead in South Australia remains unclear this morning.
Under an initiative announced in February prior to the Weatherill Government going into caretaker mode, 5kW solar power systems, Powerwall 2 batteries and smart meters were to be installed on 50,000 homes across the state over the next 4.5 years; forming a virtual power plant.
1,100 Housing Trust properties were to get the initial installations, followed by another ~24,000 Housing Trust homes; with the balance of ~25,000 to be installed at private properties. Recipients of the systems would purchase the electricity generated at a discounted rate.
The then-Weatherill Government said it would chip in with a $2 million grant and provide further support through a $30 million loan to be issued from the Renewable Technology Fund. The rest of the $800 million required for the project was to come from investors.
Marshall – “Not Part Of Our Agenda”
Whether the bulk of this project will now proceed is in doubt after comments from freshly-minted Premier Steven Marshall yesterday.
Questioned by ABC RN Breakfast’s Fran Kelly about the plan just prior to being sworn in yesterday, Mr Marshall stated:
“That’s not part of our agenda. Our agenda is 40,000 homes.”
As SQ blogger Ronald mentioned yesterday, Premier Marshall plans to spend $100 million on subsidies for solar battery systems. The scheme will provide a grant to households averaging $2,500 to facilitate the installation of energy storage in 40,000 homes.
“It will be available to households that have solar PV systems installed and will be means-tested to ensure low-income households can access the scheme consistent with Recommendation 6.6 of the Finkel Review,” states the Liberal Energy Solution document (PDF).
$2,500 is generous, but it would still put battery storage of any reasonable capacity out of reach of many low-income households.
The Marshall Government intends to issue instructions for the establishing of the scheme within its first 100 days.
Contracts Will Be Honoured – But..
The SA Liberals announced their battery plan well before SA Labor unveiled the Tesla virtual power plant scheme and it was pretty clear Steven Marshall was not amused at the time, stating Labor was playing catchup – but the two schemes are very different from each other.
Soon after now-Premier Marshall was sworn in yesterday, he stated any previous contracts the Weatherill government entered into will be honoured.
“Any other items that they flagged during the election, we’re happy to look at it but we’ve got our own energy policy agenda and we’ll be rolling that out as a priority,” said Premier Marshall.
How much (if any) of the Tesla virtual power plant gets rolled out may depend on what contracts have already been signed. Whether the $30 million Renewable Technology Fund loan contract has already been inked isn’t clear. However, Tesla may decide to attempt to proceed even without the loan should that not be forthcoming.
At the time of writing, Tesla’s Elon Musk didn’t appear to have any comment on the situation. It seems he’s been busy learning how to pour flaming absinthe over a tower of glasses in a Jerusalem “speakeasy” (a retro-style bar).
Elon Musk – Instagram
Perhaps it was a subtle hint of the fire and fury Elon Musk would pour upon Premier Marshall should he get in the way of Tesla’s virtual power plant rollout? Probably not, everyone sounded pretty happy in Mr. Musk’s Instagram video clip and oblivious to the drama unfolding down under. Absinthe will do that.
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I think they should at lest roll out the first 1,100 systems.
I would how ever tender out the battery’s hey Tesla might win it but at lest they can work out what is the best option instead of going those look good.
If it works roll it out to the 24,000 trust homes as planed. (not sure about the other 25,000)
I believe the Virtual Power Plant is a better plain then the $2,000 grant.
There was some fine print in the Labour scheme, you would buy the power back from the battery at a retail rate from the virtual battery so there was never going to be any saving apart from power from solar panels.
I think this might be Victoras big chance ,we pinched the Grand Prix now we grab the lead with Solar and Batteries !!!!