Multinational battery company Alpha-ESS has ramped up South Australian production this week, opening its new assembly facility at Lonsdale, as part of its commitment to the South Australian Government’s Home Battery Scheme.
With their first production line installed and operating at Lonsdale, Alpha-ESS will increase their production of batteries to roughly 500 systems per month for the rest of the year, ramping up to 1000 systems per month next year.
Alpha-ESS batteries will form part of a new virtual power plant (VPP) launched into the market this week by ShineHub and energy retailer Powershop.
Minister for Energy and Mining Dan van Holst Pellekaan welcomed the news that Alpha-ESS has transitioned to a permanent facility in South Australia.
“As one of the pioneer manufacturers in the energy storage market in South Australia, we are pleased Alpha-ESS is expanding its production outfit, providing a boost for local jobs and industries,” Minister van Holst Pellekaan said.
“Alpha-ESS set up in Australia in 2015 and committed to assembling its batteries in South Australia in November 2018, following the establishment of the State Government’s Home Battery Scheme.”
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Alpha-ESS managing director Dr Dong Lin said the company will aid transition to cleaner, more reliable and more affordable energy in the state.
“We are now ready to bring our investment and operation to the next level, to boost the energy transition in South Australia”, Dr Lin said.
“We are planning to increase our production of batteries to around 500 systems per month for the rest of the year and ramping up to 1000 systems per month next year.”
The new ShineHub VPP offers savings of up to $7000 on the cost of an Alpha-ESS battery using the subsidy of up to $6000 available from the Home Battery Scheme and a further $1000 discount.
South Australians can join the ShineHub VPP if they have an existing Alpha-ESS battery or by purchasing a new one, and will receive a payment from Powershop every time their battery is used to support the grid.
ShineHub estimates that depending on the household and battery size, households can anticipate savings of $300 per year on their electricity bills, on top of the savings from installing solar panels and a battery.
The ShineHub VPP joins four other virtual power plant offerings currently available in the South Australian market from AGL, Simply Energy, Telsa and sonnen.
“The South Australian Government’s Home Battery Scheme is putting more power in the hands of consumers with households being offered incentives – saving them thousands of dollars – in return for adding their battery into a virtual power plant,” Minister van Holst Pellekaan said.
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ShineHub chief executive officer, Alex Georgiou, said ShineHub’s mission is to make solar and battery technology affordable and accessible for all South Australians, while supporting local jobs and communities.
“We’ve managed to develop a scheme that utilises locally assembled batteries and makes it cheaper for households to adopt solar and storage and reduce their power bills,” he said.
Alpha-ESS currently has more than 20,000 residential and commercial systems running in more than 40 countries globally. Since starting production in Australia, 5000 plus systems have been installed.
As a result of production increases, Alpha-ESS intend to employ between 80 to 100 people over the next six to 12 months.