Tesla to Build Virtual Power Plant in South Australia

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South Australian Energy Crisis

Just a few months after Tesla built the world's biggest energy storage with lithium-ion batteries in South Australia, they are building a virtual power plant.

South Australia is having an energy crisis.  The South Australia region has had many blackouts, and lack the energy needed to run the infrastructure adequately.

South Australia, in partnership with Tesla, plan to build a virtual power plant to solve their energy crisis.

Tesla and the Virtual Power Plant

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South Australia wants to build a 250MW virtual power plant.

How will they do it?

They will build solar panels and battery storage solutions onto homes.  It will start with 1,100 public housing properties.  From there, property owners can volunteer to add the solar panels and storage batteries to their homes.  If the trial continues, 24,000 houses will be added to the "virtual power plant."  The homeowners who volunteer their homes to be part of the grid get a significant discount on their electricity bill.  They can expect about 30% off their bill.

What makes solar panels and battery storage a virtual power plant?

The software.

The virtual power plant's software will decide when to store energy in the 13.5 Wh Powerwall, and when to sell it back to the grid.

Tesla will install the panels and battery solutions, but after that, a third party will take over and issue bills.

Basically, the panels and battery storage will be a distributed solar power plant that is run by software.