The $800 million (US $634 million) project—struck in February by Tesla CEO Elon Musk and former South Australian Premier Jay Weatherill—involves installing solar panels and batteries on 50,000 homes to function as an interconnected power plant.
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Since switching on in December, Tesla's massive battery in South Australia has already drastically lowered prices in the region's frequency and ancillary services market (FCAS) and has taken a major share of that market, Renew Economy reported.
During Australian Energy Week, McKinsey and Co. partner Godart van Gendt boasted about the stunning efficiency of the 100-megawatt Powerpack system, which is connected to Neoen's Hornsdale wind farm.
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The plan involves installing a 5-kilowatt solar system and a Tesla Powerwall 2 battery on roughly 50,000 homes across the state over the next four years. The setup will be installed at no charge to the households and financed through the sale of electricity.
South Australia officially activated the world's biggest battery on Friday. The feat was achieved much to the credit of Elon Musk, who made a daring bet to “get the system installed and working 100 days from contract signature or it is free."
Musk was responding to a challenge from Australian billionaire Mike Cannon-Brookes to help fix the Australian state's electricity woes. Losing the bet would have cost the Tesla CEO "probably $50 million or more."
The 100-megawatt Powerpack system is the world's largest, or three times bigger than Tesla and Edison's battery at Mira Loma in Ontario, California.