This is about the Hornsdale battery, not IFN's smaller Lake Bonney battery, yet IFN will have enjoyed a proportionate benefit from its operations. ______________
According to the annual results published overnight by the Tesla big battery’s owner, the Paris-based renewable energy and storage developer Neoen, the operating income from storage activities in Australia rose by 36 per cent to €12.1 million in 2019.
This storage income came almost exclusively from the Tesla big battery at Hornsdale (a small amount will have come from a small battery in France), and largely reflected a big jump in revenue from the frequency and ancillary services market, where the South Australia battery has played an increasingly dominant and important role.
Earnings from storage reflected as (EBITDA earnings before interest, tax, depreciation and amortisation – were up 24 per cent to €17.4 million Previously disclosed revenue from the storage segment rose 15 per cent to €20.5 million.In terms of EBITDA, it means that Neoen has recouped around half of the estimated $A96 million cost of the Tesla big battery, which was completed in late 2017 after South Australia sought to boost system security following the system black in September, 2016.
SA's grid capacity constraints means its circumstances differ from the rest of E Australia, yet the benefits of batteries are clear. Colocating B + W is the sweetest combination and I urge RR & team to add another where it makes the most sense.
Multiple batteries at multiple locations adds a layer of geographic arbitrage to the time/price arbitrage gains in changing intermittent off-peak generation to firm biddable premium price peak supply.
Carpe Diem!
Ash
IFN Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
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