Australia's regulator sues company for lack of power from its Tesla battery

The Australian Energy Regulator (AER) said it sued South Australia's “Big Tesla '' battery for allegedly failing to live up to its promises to help rescue the power grid, as it did not provide backup power during four months in 2019 for which it had received payment.

“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,” said AER Chair Clare Savage in a statement.

“Failure to comply with the latest market ancillary service offer and AEMO dispatch instructions is in breach of the National Electricity Rules and may result in AER enforcement action,” he added.

On demand power from storage is crucial for preventing blackouts in Australia which is dependent on renewables such as wind and solar; from which energy is not always available.

Hornsdale Power Reserve was the world's biggest battery when it was switched on in 2017 by Tesla. Elon Musk, the Chief Executive, said his megapack batteries could prevent blackouts in South Australia.