Following the energy crisis in South Australia last September where a heat wave blacked out more than 80,000 homes and a mega storm resulted in a statewide blackout, Tesla (NASDAQ:TSLA) and Space X chief executive Elon Musk recently announced that his company is capable of fixing the system through Tesla’s battery farm in only a span of 100 days.
100 Days Or Free
Elon Musk announced on top of the promise to finish the energy problem in 100 days, that should his company fail to accomplish the task in the time that they have promised, they would charge nothing. This was made apparent after Atlassian's (NASDAQ:TEAM) Mike Cannon-Brooks asked Musk over Twitter about how serious he is about his offer.
Brooks also offered to take care of funding and other arrangements should Musk guarantee that the system would be installed in 100 days.
Vice President for energy products Lyndon Reve backed Musk and stated that this would prevent any future blackouts which regularly plagues South Australia.
Reve also added that the battery storage can be fixed in only 100 days and the company recently success in fixing the methane leakage in a gas peaking plant in California.
The company has been promoting their battery products like the Powerwall 2 and Powerpack 2 in Australia this past week.
SA Premier And Prime Minister Open To Proposal
Following Musk’s announcement, South Australia Premier Jay Weatherill responded to a Tweet on Twitter regarding the proposal from the Tesla CEO and responded that they are working on it.
Not long after, Prime Minister Malcolm Turnbull tweeted thanks to Elon Musk for a “great in-depth discussion” in a one-hour conversation with the Tesla founder. The prime minister is known for his commitment to exploring and trying out technological options to enhance electricity storage.
Turnbull reportedly sought legal advice regarding the energy plan for South Australia after Environment and Energy Minister Josh Frydenberg warned that an energy plan would increase the price of electricity in other states.
Tesla currently has a huge chance of winning the bid despite a huge competition from other battery makers or even local suppliers with the government of South Australia actively looking for a new source of electricity to power its grid which has been causing them problems and backlash, especially during the past year.
The government is currently looking for a new supplier and someone who can provide renewable energy to which Tesla can answer to. Although the SA’s government is to decide, the funding would come from private sector investors.