The 100-megawatt battery will be built at Hornsdale Wind Farm near Jamestown in South Australia. The project will be 60 percent larger than the battery systems in southern California.
The lithium ion battery is comprised of several hundred PowerPack towers which will store renewable energy generated by the wind turbines. The system is said to be able to power more than 30,000 homes.
Tesla’s CEO Elon Musk said the company could lose $50 million or more if they failed to deliver the battery in 100 days. The project is expected to be completed by December 2017.
“It will completely transform the way in which renewable energy is stored, and also stabilise the South Australian network as well as putting downward pressure on prices,” Jay Weatherill, Premier of South Australia told ABC News.
South Australia suffered two statewide blackouts last year when a 50-year storm damaged infrastructures and during the heat waves in Australian summer.
The venture is part of Tesla’s endeavors to promote the transition to sustainable energy. The company has previously released energy products including the solar roof, solar city and gigafactory.