Tesla’s Giant Battery Seen Credit Positive for South Australia

Billionaire Elon Musk’s plan for Tesla Inc. to build what he says is the world’s biggest lithium-ion battery system in South Australia will be credit positive for the region if it can improve reliability and lower power-supply costs, according to Moody’s Investors Service.

Widespread use of a successful technology will help improve business confidence in the state and stimulate investment at a time when South Australia’s economy is transitioning away from auto production, Moody’s said in an emailed statement.

South Australia started to seek new forms of energy storage after a severe thunderstorm triggered a state-wide blackout, raising questions over the stability of its electricity supply. Musk’s Tesla has promised to provide 100 megawatts of battery storage by Dec. 1,  pairing it with a wind farm at Hornsdale, north of Adelaide, operated by France’s Neoen.

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