Tesla's batteries seem to be performing so well that the company believes it's being underpaid. According to a report from Sydney Morning Herald, Tesla claims that it's not being properly compensated for the electricity its South Australia battery farm is generating for the country's power grid.
Tesla says that the batteries supply electricity faster than the Australia Energy Market Operation (AEMO) can register, which is why the company believes it's not being properly paid. Currently, the standard are base don response rates for fossil fuel generators, but Tesla's batteries are responding much faster.
“Tesla estimates that the Hornsdale Power Reserve battery has delivered 30 to 40 percent of its services to frequency markets without being paid due to existing AEMO technical specifications being written based on fossil fuel generation assets,” Tesla said.
Last December was when Tesla's battery farm went live in South Australia and has proven to be a worthy addition. In January, the AEMO asked energy companies to provide power to the grid, which it does in cases of system outage of planned maintenance. Typically when this happens, it drives energy prices as high as around AU$9,000/MW, but because of Tesla's batteries and adjoining wind farm, it kicks in and keeps prices around AU$270/MW, which saves millions.