Tesla, Inc. (NASDAQ: TSLA) and Vestas Wind Systems close a contract, valued at $160 million, will form the world’s first battery technology that will store both wind and solar energy. The project will also include Windlab, who is managing the project at the Kennedy Energy Park site, and Quanta.
Tesla previously announced that the company would be working with Vestas on batteries, but now Tesla has won the contract with wind company but will even further expand upon the project.
The Denmark based company and Tesla’s project will be located in North Queensland, Australia. The goal of the project is to bring down costs of renewable energy production and secure a stable supply of power to the grid.
The project will use the batteries supplied by Tesla, which are also used in its car models. It is expect to generate enough power to supply more than 35,000 Australian homes.
Vestas says the turbines will be the largest ever deployed in Australia.
The project will use 12 Vestas V136 turbines, which can hold up to 43.2MW of wind power capacity using a 4MWh lithium ion battery storage. The lithium ion battery will be supplied by Tesla.
The project is expected to take up to a year to completely construct, and expected to be fully operational by the end of 2018.
“We believe Kennedy Energy Park will demonstrate how effectively wind, solar and storage can be combined to provide low cost, reliable and clean energy for Australia’s future.” said Roger Price, Windlab's Executive Chairman and CEO.
Vestas has said it expects wind power to be profitable even without government subsidies in the next decade. Goldman Sachs analysts predict renewable energy in Europe will be cheaper than fossil fuels by 2023, according to Reuters.
If this project successfully demonstrates its purpose, it will mark a milestone for renewable energy. Although the project may seem small, it can and definitely will be scaled to even larger projects in the future.