Elon Musk has promised to solve an energy crisis in Australia in 100 days, or else he’ll deliver it for free.
The Tesla founder, and former Queen’s University student, was responding to the challenge of billionaire businessman Mike Cannon-Brookes, who wanted to know if the company was serious when he said he could end the blackouts in South Australia quickly.
“Tesla will have the system installed and running within 100 days of signing the contract or it will be free. Is that serious enough for you?” Musk wrote on Twitter.
Cannon-Brookes responded: “legend! You’re on mate. Give me 7 days to try sort out politics & funding. DM me a quote for approx 100MW cost – mates rates!”
Musk replied by quoting a price of “$250/kWh at the pack level for 100MWh+ systems“, adding that Tesla is moving to fixed and open pricing and terms for all products. He further confirmed, in response to another comment, that his quote was a standard global price “but shipping, taxes/tariffs and installation labor vary by country, as those costs are beyond (Tesla’s) control.”
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1.7 million Australians living in the south of the country suffer from constant power outages and energy shortages. In September most of the state was out of power after a storm hit crucial transmission lines.
Another major blackout occurred last month after an unexpected rise in energy demand came from a heatwave.
The Australian government announced that the issue was a priority and said increasing grid storage could help.
That’s where Tesla comes in. The manufacturer of electric cars and batteries offered to provide 100 megawatts per hour of battery storage at a cost of 25 million dollars.
Lyndon Rive, who heads Tesla’s battery division, said in an interview with AFR Australia that the company was able to deliver the battery packs thanks to increased production at its battery ‘Gigafactory‘ in Nevada.
Cannon-Brookes volunteered to help provide funding and lobbying for the project’s political support.
Sarah Hanson-Young, an Australian senator, said on Twitter on Friday that she wanted to talk to Musk about his offer.
Come on SA! Let’s do this! >> Elon Musk offers to fix Australian power network in 100 days. https://t.co/HswJk8XSZs
— Sarah Hanson-Young (@sarahinthesen8) March 10, 2017