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.

About BloombergNEF

BloombergNEF (BNEF), Bloomberg’s primary research service, covers clean energy, advanced transport, digital industry, innovative materials and commodities. We help corporate strategy, finance and policy professionals navigate change and generate opportunities.

Available online, on mobile and on the Terminal, BNEF is powered by Bloomberg’s global network of 19,000 employees in 176 locations, reporting 5,000 news stories a day.
Sign up for our free weekly newsletter →

Want to learn how we help our clients put it all together? Contact us