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The plan is to provide free solar and Tesla batteries to 50,000 homes. It will the world's largest virtual Power Plant. Energy Minister Tom Koutsantonis said the plan would lower power bills by 30 per cent for participants.
"My government has already delivered the world's biggest battery, now we will deliver the world's largest virtual power plant," state Premier Jay Weatherill said in a statement.
"We will use people's homes as a way to generate energy for the South Australian grid, with participating households benefiting with significant savings in their energy bills."
About 1,100 public housing properties will participate in the trial. Each supplied with a 5kW solar panel system Tesla battery. After which, the systems will be installed at a further 24,000 public housing properties before the scheme is opened up to other South Australians over the next four years. South Australia is also set to look for an energy retailer to deliver the programme to add more competition to the market.
Tesla said in a statement to AFP that the virtual power plant would have 250 megawatts of solar energy and 650 megawatt hours of battery storage.
"At key moments, the virtual power plant could provide as much capacity as a large gas turbine or coal power plant," the company added.
Australia is one of the world's largest producers of coal and gas but the South Australian. More than 60 percent of electricity generation in Australia is from coal, with 14 percent from renewables, according to government data published in 2016.
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