ELON MUSK'S MEGA-BATTERY SAVES SOUTH AUSTRALIA $35 MILLION IN FOUR MONTHS

Last year, Elon Musk made the State of South Australia an offer they couldn't refuse. He promised to install the world's largest lithium-ion battery in 100 days and at a bargain price in order to store surplus power from the Hornsdale Wind Farm and use it to stabilize South Australia's power grid.

The crash project has been enormously successful. In the first four months of operation it saved the state government $35 million (Australian dollars, equal to $26.3 million US). That's an amazing return on investment, given that the project cost the state just $50 million (37.5 million US). It looks as though it will pay for itself within its first 18 months.

Hornsdale Power Reserve battery with three of the Wind Farm's 105 turbines in background

Credit: David Clarke 

The giant battery's primary function is to stabilize the frequency of electricity flowing through the state's power grid. When a generator or transmission line goes down, the grid frequency drops until backup power can fill the gap. If there's insufficient backup, disruptive brownouts or blackouts occur. But even if a backup plant comes on line or power can be purchased from a neighboring grid, the price of that stopgap power can soar. A grid operator might have to pay $10,000 or more per megawatt-hour, compared to a normal price of $150 or less.

Most of the $35 million that the huge battery saved the South Australian government came from the battery's ability to switch on and re-stabilize the grid extremely quickly--within 200 milliseconds, far faster than other kinds of backup power plants. According to RenewEconomy, the battery now commands 55 percent of the stabilization market in South Australia, and has reduced the cost of back-up power by a stunning 90 percent.

By the end of 2018, the savings surged to an estimated $40 million.

Critics of renewable energy cite intermittency--the fluctuating supply of energy from wind and solar--as a major obstacle to the urgently-needed transformation to renewables. Although the Hornsdale project shows convincingly that batteries can solve the short-term back-up power problem, the battery doesn't store enough energy to make coal or gas power plants obsolete. But it's clearly a step in the right direction. South Australia agrees, with several giant battery projects being developed in the state, and several more in other parts of Australia.

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Here's an interesting and extremely positive follow-up to the above story. Basically, South Australia's continuing development of carbon-free energy, including storage, has been an incredible success.

PLUG-IN ELECTRIC CARS NOW THE CHEAPEST TO OWN AND OPERATE

Forget climate change, air pollution, the environment, or any other non-economic reasons for switching to an all-electric car. Even if all you're interested in is your personal bottom line, a new study in the UK, Japan, California and Texas shows that all-electric cars are now cheaper to own and operate than gasoline, diesel or hybrids.

The study, published in the journal Applied Energy tracked the total annual cost of ownership--TCO--in four major markets from 1997 through 2015. TCO includes depreciation, tax, insurance, maintenance and the cost of fuel or electricity. The differences were significant, with all-electric cars averaging more than $1000 per year less to own and operate than diesel, and close to $2000 per year less than gasoline powered cars over the last four years.

Tesla Model S at a Supercharger Station
Credit: Jusdafex

All-electric cars typically cost more than comparable gasoline or diesel models, depending on applicable subsidies, but more than made up for the difference because of lower maintenance and energy costs.

2016 Nissan Leaf being charged
Credit: Jakob Härter

Of course this doesn't mean that everyone is going to make their next car all-electric. Although lower-cost cars like the 100-mile range Nissan Leaf will work for some drivers, and high-end models like the Tesla Model S are attractive to others, there are few options in the vast mid-range market. And many potential buyers are waiting until electric cars have more range and can be charged faster and in more locations.

However, the study's authors point out, as electric vehicle production ramps up, prices are going down, and batteries are rapidly getting better and cheaper as well. "It is a really good news story," says James Tate, a transportation specialist at the University of Leeds, in the UK, and one of the study's authors. We couldn't agree more.

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You can read the Guardian story on this subject here.

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