Tesla chief executive Elon Musk says he can solve South Australia’s energy crisis for $33 million and in less than 100 days.
In a bold Twitter statement last week, the Tesla boss said his US-based company could build a 100MWh battery farm less than four months after the contact is signed.
On Saturday, Mr Musk revealed he had spoken to Prime Minister Malcolm Turnbull and South Australian Premier Jay Weatherill about battery storage solutions, decribing the SA Government as “clearly committed to a smart, quick solution”.
Mr Weatherill told advertiser.com.au he had “positive discussions” with Mr Musk regarding the battery proposal.
“Many local, national and international businesses have come to us with proposals in the weeks since we announced our plans to intervene in the broken national energy market,” Mr Weatherill said.
“We will be releasing our energy plan very soon.”
Founder of Australian software company Atlassian Mike Cannon-Brookes, responded to Mr Musk’s Twitter proposal saying he would arrange finance and political support for the battery farm.
Mr Musk quoted a price of US$250 per kWh for 100MWh systems, which would imply a price of US$25 million for the battery packs.
He said if the work was not completed in 100 days it would be free.
Solar and energy storage companies are ready to bid in even cheaper options to solve South Australia’s energy crisis, according to the Energy Storage Council.
“Just today major global battery suppliers have told me they could deliver a 100 megawatt (MW) on-grid battery in SA for less than the $330 million quoted by Musk,” Energy Storage Council chief executive John Grimes said.
“There are over 50 brands active in Australia who could individually or in consortiums, deliver 100MW or more in 100 days of signing a contract.
“Tesla have come in with an opening bid, and in the space of 24 hours turned the energy debate on its head.
“With this fantastic proposal… people see real, affordable solutions are a reality right now.”
The SA Premier is expected to deliver a plan for the state’s energy crisis, following months of blackouts and instability in the grid.