The Hornsdale Power Reserve, otherwise known as the ‘Tesla big battery in South Australia’ delivered a windfall profit to Paris-based owner Neoen in the first half of 2020.
The Tesla big battery delivered a one-off profit boost of €16.4 million ($A27 million). The profit meant Neoen more than trebled its total earnings before interest and tax from battery storage to €23.2 million from €6.9 million.
This contributed to a 58 per cent boost to overall earnings in the first half to €148.2 million. Total earnings (EBITDA) in its first two and a half years of operation were €54.4 million, translating to $A88 million – for a battery that cost a little over $A90 million.
Furthermore, consumers have saved over circa $A150 million.
The battery played a key role in restoring South Australia’s main link to Victoria, after the state effectively stopped working.
The Tesla battery has a history of delivering profit. It generated revenue of A$13.1 million in the first six months of 2018, approximately A$2 million came from the South Australian government’s contract with Neoen.
Tesla has far reaching impact and the South Australian government may not be the only Australian entity to benefit from Tesla’s technology.
That is evident following Tesla’s Battery Day this week which promised a new, lower cost electric vehicle and highlighted the company’s investment as The Driven suggests in “bringing down the cost rechargeable lithium-ion batteries, redefining the supply chain and reducing their environmental impact”.
Tesla wants to bring to market an electric vehicle (EV) that has a standard cost of around A35,000, $10,000 cheaper than its current value.