A rundown of the South Australia energy crisis

South Australia and their energy crises issues seem never ending. If it’s not the gas crisis, it’s the energy gridlock. Luckily, an exchange between two multi-millionaires has brought the spotlight on what South Australia can do in relation to their energy crisis.

Elon Musk, the renowned founder of Tesla Motors, has released a new battery in Australia. The battery is called the Powerwall 2, and Musk has said that it can fix the rolling blackouts that have constantly been happening in South Australia. His bold claim came when he was exchanging tweets with Mike Cannon-Brookes, the CEO and co-founder of Atlassian. Atlassian is a company that focuses on software development and project management. The Twitter exchange between the two is what propelled the South Australian energy crisis to the forefront of Australian news.

Tesla will get the system installed and working 100 days from contract signature or it is free. That serious enough for you?

— Elon Musk (@elonmusk) March 10, 2017

$250/kWh at the pack level for 100MWh+ systems. Tesla is moving to fixed and open pricing and terms for all products.

— Elon Musk (@elonmusk) March 10, 2017

Musk’s offer of half the usual price attracted Prime Minister Malcolm Turnbull to engage with the possible solution to the energy shortage in South Australia. Turnbull and Musk spoke on the 12th of March about energy storage and how it can be implemented in the Australian energy industry.

Thanks @elonmusk for a great in depth discussion today about energy storage and it's role in delivering affordable & reliable electricity

— Malcolm Turnbull (@TurnbullMalcolm) March 12, 2017

It appears that South Australia is willing to try Musk’s new battery, the Powerwall 2. The Powerwall 2 is quite expensive, with an $AUD10,000 price tag, which explains why the government is jumping at the chance to get Musk on board.

The Renewable Energy Plan for South Australia is being released today, which details the South Australian government’s plan to utilise $150 million that was granted into a fund that will support “projects that make renewable energy available 24 hours a day, seven days a week, to power the state when it is needed.”

The first project to receive funding is a battery project that has been dubbed the biggest in the nation. The funding should ensure that the project grants South Australia “100 megawatts of storage.”

That number is identical to the one that Elon Musk publicly pledged on Twitter. Other Australian battery companies have said that they’re capable of providing South Australia with the power it so desperately needs. Zen Energy, who specialise in solar panels and battery storage, have already been working on a $100 million solar power plant with 100 megawatts of storage.

Chairmen of Zen Energy, Ross Garnaut said the Government’s focus on energy brought its plan closer to fruition.

“The Government says it wants it in place by next summer and we’re ready to put it in place by next summer,” Professor Garnaut said.

Some experts contest the focus on solar energy, yet Mike Cannon-Brookes couldn’t be more excited that the government is considering other alternatives.

“I’m just trying to change the conversation so we talk about something other than coal and gas as a potential solution going forward for the country,” Mr Cannon-Brookes said.

Although it all sounds very exciting for the state of South Australia, it’s uncertain as to which solar and battery company will win the funding.