Musk offers to fix Australia's energy crisis in 100 days

If the grid can over-produce during the day and charge Musk's batteries, that power can be drawn on later in the evening when the grid is being stressed the most.

This time, Musk said that he can assist in solving the power crisis in South Australia within just 100 days. While visiting a power substation near Melbourne earlier this week, Mr.

While Rive wasn't the first to propose building more storage, Tesla's high profile drew a response.

In a follow-up tweet, Musk offered Cannon-Brookes a pricing quote for the project: $250 per kilowatt-hour of energy for 100-megawatt-hour systems, according to Reuters, which amounts to a total of $25 million for the batteries.

In an exchange on Twitter with Australian entrepreneur Mike Cannon-Brookes, Musk said the United States electric auto and battery giant would deliver the batteries for free if the self-imposed 100-day target is not met. "That serious enough for you?" he replied.

Australian billionaire Mike Cannon-Brookes has accepted the deal, asking for seven days to sort out politics and funding.

While Musk has a reputation for audacious goals, there's reason to think this one isn't typical Silicon Valley bravado. At the product launch, Lyndon Rive, who is Tesla's Vice President for energy products - and Musk's cousin - credited the new Gigafactory with making the company's 100 MWh offer possible.

And Tesla has already proven itself able to build these kinds of facilities. The company also managed to complete the installation of a 80MWh grid-scale battery farm in southern California using lithium-ion batteries within 90 days. If a system like Tesla's works, then their problem can be solved. "Storage is quite a new thing".

On Friday, SA's Energy Minister Tom Koutsantonis said the State Government was "up for the discussion", but said the private sector should put up the cash. That involves running water uphill when demand for power is low and releasing it when demand peaks, allowing extra power to be generated from hydroelectricity.

Large-scale batteries have some ground to make up.

On price, Rive said that he expected the cost of Tesla's battery storage - now sitting somewhere between $A530/kWh - $A900/kWh - would continue to decrease with the economies of scale already being achieved via its gigafactory production, but probably not at the same rate of decline seen over the past year.