Tesla pledges to fix Australian state's power woes

Brittany BishopMar 13, 2017

Tesla Inc.'s Elon Musk has set his sights on Australia, betting his company's battery technology can help solve the country's energy problems and save it from a repeat of the blackouts that struck households and businesses in the south for several days previous year.

Musk, along with his cousin Lyndon Rive - who was the CEO of Tesla's recently acquired SolarCity, promised to install 100-300 megawatt hours of batteries required to solve the energy crisis. Adding "That serious enough for you?"

After reading the news, Mike Cannon-Brookes, the Australian co-founder of Atlassian, tweeted Musk to offer his support. "If I can make the $ happen (& politics), can you guarantee the 100MW in 100 days?" Musk replied a short while later quoting the price per battery pack at $250/kWh for the installation of 100MWh+ battery farms.

At least Cannon-Brookes has one less politician to convince because South Australia senator Sarah Hanson-Young saw the exchange and invited Musk to talk about it.

South Australia's population of 1.7 million people suffer regular power cuts and energy shortages.

A spokesman for Mr Weatherill declined to comment further about the specifics and how much funding the state government may be prepared to commit to advance such a proposal. But Tesla promises to deliver cheap, dependable energy storage as the solar sector grows.

"We have been talking with a number of large-scale battery providers about potential storage solutions, including in South Australia". He plans to do the same by building a massive 100 MW battery storage farm in the said time frame. But last night, Musk publicly responded to Cannon-Brookes with rates.

South Australia has been engulfed in a full-blown energy crisis for months now, with residents enduring seemingly endless blackouts and price spikes.

Less than 24 hours later, Musk boldly bet that Tesla can assure that things will be completely set up in 100 days upon contract signing date or they will waive the entire fee for the undertaking.

Mr Cannon-Brookes confirmed he was dead serious about his offer to Mr Musk, and said his team had spent Thursday afternoon investigating the proposal. Whether or not the Australian government agrees to the deal will be known later, however considering Tesla's track record, it is highly like the company will land the contract.

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