Tesla has announced its plans to open the world’s largest virtual power plant in South Australia.
The South Australian Government has fast tracked the construction of the plant by granting Tesla a $2 million grant alongside a $30 million loan from the Renewable Technology Fund.
The technology uses a network of solar panels and battery systems working together to store and feed energy back into the grid.
Over 50,000 homes will be involved by the new plant, making it the biggest Virtual Power Plant in the world.
Analysis by Frontier Economics shows that the plant is expecting to lower energy bills for participating households by more than 30 per cent .
The power plant will be privately owned and operated with Tesla and the SA Government seeking retailer to sell the energy generated.
According to the SA Government, the new virtual power plant will meet 20% of SA’s total average daily energy requirements and houses with the systems would be able to help avoid blackouts.
South Australian Premier Jay Weatherill said his number one priority was providing more jobs in the renewable energy industry.
“More renewable energy means cheaper power for all South Australians, but it also means the jobs of the future,” Mr Weatherill said.
“We want South Australian companies to reap the benefits of our major renewable energy projects, which is why we insisted upon local manufacturing for the Virtual Power Plant.”
Tesla are not the first to have built this technology, with AGL rolling out their own Virtual Power Plant last year.
Energy Minister Tom Koutsantonis said that with the Tesla battery at Jamestown and the Port Augusta solar thermal plant under development, SA is leading the way in the storage of renewable energy.
“This is a booming global industry and we want as many jobs in this sector as possible created here in South Australia,” he said.