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Australia Sues Tesla Big Battery for Failing to Deliver What it Promised

The AER (Australian Energy Regulator) filed a lawsuit against the Tesla Big Battery in Australia’s Federal Court. The regulator alleges that the Hornsdale Power Reserve – Tesla Big Battery’s official name – did not keep the power grid stable as it should. In technical terms, the Tesla Big Battery would not have provided FCAS (frequency control ancillary services) despite being paid to do so.
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According to “The Sydney Morning Herald,” the lawsuit is against Neoen, the company that owns and operates the Hornsdale Power Reserve. This is the second issue the company has involving Tesla. On July 30, a Megapack at Neoen’s Victorian Big Battery caught fire. It took firefighters four days, 150 people, and 30 fire trucks to extinguish the blaze.

The Tesla Big Battery is paired with the Hornsdale wind farm, storing the electricity it generates during the day to deliver it when there is more demand. The 193 MWh battery pack would have helped lower frequency control ancillary services costs and reduce intermittency, but that’s not what AEMO (Australian Energy Market Operator) thinks.

The operator stated that the Hornsdale Power Reserve made offers to AEMO between July and November 2019 and got paid for them, but failed to provide the services it sold. Things got complicated when Queensland’s Kogan Creek coal power station failed in October 2019. The Tesla Big Battery would not have been helpful to prevent a blackout.

It is unclear why the AER decided to sue Neoen only now if the power outage happened almost two years ago. It would be seeking penalties, declarations, and costs from the French renewable energy company.

Clare Savage, AER’s Chair, said that energy providers have to deliver what they promise “if we’re going to keep the lights on” while moving the grid to renewable energy. Failures in doing so were “in breach of the National Electricity Rules” and subject to “enforcement action.

The Sydney Morning Herald” got in touch with Neoen Australia’s managing director. Louis de Sambucy said that the company “repeatedly delivered on the high expectations” since 2017 and that it is a “critical component of the South Australian electricity network.” He also showed disappointment with AER’s decision, but did not dispute the failures the regulator said the Hornsdale Power Reserve presented nor explained what caused them. The lawsuit may reveal if it was a mistake from Neoen or a technical difficulty related to the Megapacks supplied by Tesla.
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About the author: Gustavo Henrique Ruffo
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Motoring writer since 1998, Gustavo wants to write relevant stories about cars and their shift to a sustainable future.
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