A solar and battery microgrid featuring Tesla tech has significantly cut diesel reliance and costs on Australia’s Lord Howe Island. According to a new report from the Australian Renewable Energy Agency (ARENA), the system saved over $1.5 million in fuel costs in just two years, reports Renew Economy.

Island Microgrid Exceeds Expectations

Commissioned in 2021, the $11.1 million Hybrid Renewable Energy Project (HREP) aimed to provide sustainable power for the island’s 400 residents and tourists. The system includes:

1.3MW of solar panels
3.7MWh Tesla battery storage
Microgrid controller
Existing diesel generators as backup

The project has outperformed projections:

Averaged 70% renewable energy penetration (vs 67% forecast)
Supplied 1,587 MWh of clean energy in year one
Increased to 1,654 MWh in year two

“The hybrid renewable energy project has improved Lord Howe’s self-sufficiency whilst also reducing the island’s reliance on diesel generators and imported fuels,” the ARENA report states.

Major Fuel and Cost Savings

The microgrid’s impact on diesel use has been dramatic:

Year 1: 349,082 liters of diesel saved ($740,054)
Year 2: 360,236 liters saved ($815,641)

That’s a total savings of about $1.55 million over two years. The system even ran the island for up to five days straight without needing diesel backup.

Reliable Clean Energy

Despite concerns about intermittent renewables, the report notes the microgrid caused “zero interruptions” to the island’s power supply. It’s also enabled skill development for local operators and residents.

EVXL’s Take

This Tesla-powered microgrid shows how battery tech can transform energy use in remote areas. It’s not just about saving money – it’s about energy independence and environmental protection. We’ve seen similar success stories with Tesla’s larger grid-scale batteries, but this project proves the tech scales down to small communities too.

Recent Developments in Tesla’s Battery Technology

Tesla continues to push the boundaries of battery technology, with recent developments showcasing the company’s commitment to innovation. In a recent incident involving a Tesla Semi truck, concerns were raised about the safety of high-voltage EV batteries. The crash prompted a federal investigation into the fire risks associated with lithium-ion batteries in electric vehicles. This incident underscores the importance of ongoing research and development in EV battery safety, particularly for larger vehicles.

On a more positive note, Tesla’s advancements in battery technology have led to increased affordability and accessibility of their vehicles. The Tesla Model 3 Long Range recently became fully eligible for the $7,500 federal tax credit in the United States, making it nearly $7,500 less expensive than the average new car price. This development aligns with Tesla’s mission to accelerate the world’s transition to sustainable energy and demonstrates the company’s commitment to making EVs more accessible to a wider audience.

What do you think about using Tesla batteries for island microgrids? Let us know your thoughts in the comments below!