In a statement from Wood Mackenzie Ltd, the plan of the billionaire Elon Musk who is responsible for the introduction of Tesla battery in Gold Coast in installing a giant battery. This battery will provide solution for the power crisis that Australians are experiencing in the south will come at a very high price because it is estimated that the installation costs will be 60 per cent higher than the other options which is the open cycle gas plants.
Tesla Inc is owned by Musk and the company has won the right to construct the largest system that operates on lithium-ion battery according to the businessman. The system has the power to provide adequate power that can sustain over 30,000 houses. The cost that will incur during the supply of the unit has not been divulged because of the low guidance and unsupported estimates thus a debate has started regarding the right power generation to be used in the mainland state that will ensure that they will be using the optimum amount of clean energy.
According to Saul Kavonic who is an analyst for Wood Mackenzie, the current costs shows off the reality that Australians living in the south has been forced to pay a higher price in order for them to have a stable supply of energy. This is after the fact that other alternatives are used for electricity generation including solar and wind. As of the moment, 20 per cent of the power generation of the state can be accounted to the contribution of solar and wind system.
Wood Mackenzie also clarified that by 2025 the batteries are going to be cost-competitive. The firm provided an estimate of the batteries fixed cost when 2017 comes and it has been set at $81 per megawatt-hour. This number is quite high compared to the fixed costs that will be charged using the open cycle gas plant which is only $9 per megawatt-hour.
The charging cost of the Tesla battery in Gold Coast will be around $57 per megawatt-hour while the cheapest gas is found out to be $59 per megawatt-hour. Thus gas is expected to be more expensive compared to the batteries when 2025 comes due to the increase in fuel cost.