- The Australian Energy Regulator has taken the operator of the Tesla Big battery to court.
- The AER alleges that the battery did not provide the service the market operator paid for.
- The AER is seeking financial penalties from developer Neoen.
The Australian Energy Regulator (AER) has filed a federal suit against Neoen’s 150MW/194 MWh Hornsdale Big Battery also known as the “Tesla big battery”, for alleged breaches of the National Electricity Rules. The AER alleges that the facility did not provide the frequency control services paid for. “Between July and November 2019, HPR made offers to the Australian Energy Market Operator (AEMO) and was paid to provide market ancillary services which allegedly it could not in fact provide, including when required to provide those services after a frequency disturbance,” the AER said in a statement. “The services are known as contingency frequency control ancillary services (FCAS), and they are required to keep the lights on following a power system disturbance.”
The AER said the AEMO first reported the failure in October 2019 after the Kogan Creek coal station tripped in Queensland. According to AER, HPR’s failure to provide the FCAS in accordance with its offers and AEMO’s dispatch instructions “created a risk to power system security and stability.”
AER Chair Clare Savage noted that “It is vital that generators do what they say they can do if we’re going to keep the lights on through the market’s transition to variable renewable generation.” Contingency FCAS providers receive payment from AEMO to be on standby to provide the services they offer. We expect providers to be in a position, and remain in a position, to respond when called upon by AEMO.” The AER is seeking pecuniary penalties, declarations and costs.
Neoen Australia Managing Director Louis de Sambucy did not speak on the allegations. However, he noted that HPR had repeatedly delivered since its inception in 2017. “Whilst we are disappointed by the AER decision, we will continue to maintain our collaborative relationship with them,” de Sambucy added.
French developer, Neoen is already faced with a delay in deploying its biggest battery in Australia, the 300MW/450MWh project Victoria Big Battery, following a fire in one of its Tesla Megapacks. The project was set to be completed in November. Neoen had recently secured tenders for the battery projects in South Australia and Canberra. In addition, the company recently completed a 20MW/34MWh Bulgana green power hub in northwestern Victoria.