Orange County Developer To Install Tesla Batteries In Two Dozen Buildings (computerworld.com)
Lucas123 writes: The Irvine Company, a Newport Beach-based real estate developer that is a dominant landlord in Orange County, plans to install Tesla commercial batteries in two dozen of its buildings around Irvine Spectrum and John Wayne Airport. The project is the first of its kind of that size. The batteries will charge during non-peak hours and distribute power to the buildings during peak hours, a process that's expected to save the developer up to 10% of its energy costs or about $1 million a year.
$30M to install? I'm seeing roughly $600k, at $25k per pop, per building.
The thing to remember about commercial building electric rates is that you not only pay a charge based on electrical usage, but also a 'peak power demand' surcharge. By reducing any peaks in power usage, it saves money on their bills.
If it saves anywhere near $1M/year, a roughly $1M investment is a foolish bargain to refuse.
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The Irvine Company is a commercial company not the government. What Orange County taxes are you talking about?
I'm sure Orange County residents are fine with wise use of tax money. It will cost over 30 million to install, it might save up to a million per year.
How long is that battery life?
How is this a use of tax money? A private company installing something that they think will save them money? Or maybe they are reselling electricity to their tenants and this will generate revenue. Of course I did not read the article very closely, so I could be wrong. Please correct me if I am.
http://www.teslamotors.com/blog/teslas-closed-loop-battery-recycling-program
Indeed, it would be much better spent on things like improving reading comprehension.
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And much cheaper to operate. You can buy a heck of a lot of gas for what I just paid for the new battery for my Prius.
I've always looked at that tradeoff. We're thinking about replacing my wife's car within the next couple of years. Saw a '95 Buick Roadmaster with 30,000 miles on it for like $7,000. I did the math and estimated high on the cost of fuel (which penalizes the Buick more than a new 300, for example) and it would take something like 140,000 miles to hit the break-even point before a more efficient car costs less.
Admittedly, there is a reduction in safety equipment in the Buick, but that Roadmaster is a very nice sedan for that kind of money.
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You don't think they'll get huge tax gifts? If not, then more power to them.
There are probably incentives from the local power company, also a private company not a government entity.
If there are tax breaks they would be state based, not county based, and would be little different from taxpayers subsidizing every solar panel a homeowner puts on their roof, etc.
"More power", yes. Because during peak hours where these batteries are going to be active is when buildings in Orange County have experience the occasional power outages. So reducing their draw during these hours is a benefit to the larger Orange County community.
I've noticed these coming a common topic amongst developers in Southern California. I've had a few ask me about this, just this week. Assuming this isn't just a flavor of the week (what happened to bloom boxes) my question is will the power company always tune there billing in such a way that makes this profitable. Realistically the buildings will utilize the same amount of power, but the peak loads will level out. in short Edison gets less money for the same kilo watts. How long will they let this fly before they begin adjusting there billing metric.
The Irvine Company is a commercial company not the government. What Orange County taxes are you talking about?
Around here, The Irvine Company's power is such that it might as well be the government.
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For those that don't know. The Irvine Company IS the city of Irvine, CA. It's one of the largest cities in Orange County, CA.
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Do the numbers really work for this? If they do, why isn't the power company buying up Tesla's production for the foreseeable future?
The Irvine Company is a commercial company not the government. What Orange County taxes are you talking about?
Around here, The Irvine Company's power is such that it might as well be the government.
Worse, more like a homeowner's association, which kind of makes sense since they are nearly everyone's landlord. Here are the three acceptable shades of beige you may paint your buildings. Here are the two types of outdoor metal tables and chairs you have outside your restaurant. You may think I am joking ... but that just tells us you have not visited Irvine.
If not, this is a waste, like changing dollars to euros and back again. You will consume more on the long run.
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The reason there are incentives for Orange County is the decommissioning of San Onofre nuclear power plant. That area is now short peak capacity especially, but also base load to a degree. The transmission lines out of San Onofre primarily feed to Orange County and don't have nearly as much import capacity.
Batteries are cost effective at $200/kW. I assume the incentives cover the delta in cost. Chilled water or ice thermal storage is much cheaper, but Irvine Company has a lot of buildings without chilled water systems (although not so much in that particular area).
It is an inefficient solution though; on-site generation would be much more cost effective and energy efficient.
OK, it only has 30K miles on it.. but even just due to being old, won't it have _some_ more maintenance than a newer car?
Give my money to some person in need instead.
Can't. They're poor, they deserve to suffer, it's God's Will.
You don't think they'll get huge tax gifts?
In Orange County? Where the airport is name after John Wayne, and Ronald Reagan is considered a demigod? I don't think so.
About four years ago I bought a '95 Impala SS with 6,421 miles on it. It still has its original belt and hoses. The LT1 engine powers the water pump off of the snout of the cam, no belt. The cooling fans are electric. I'm up to about 30,000 miles on the Impala, no significant problems. Had to replace a broken antiswaybar bushing on one of the end links. It'll need a new power antenna, it's stuck. That's the bulk of it.
I expect that a Roadmaster (same car under the sheet metal) would behave much the same way.
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Because during peak hours where these batteries are going to be active is when buildings in Orange County have experience the occasional power outages. So reducing their draw during these hours is a benefit to the larger Orange County community.
You are spot on with this. As an employee of a company who is in an Irvine Company building that is going to get these batteries, I can attest to the power outages and mandatory rationing that we are subject to. They are not too invasive and so far have amounted to little more than no building A/C after 5pm. I had to contend with much worse rationing working at a non-profit in downtown LA who had heavily discounted power.
I mean, they make sense in a car, because they are light, but for a building a lead-acid battery would make more sense, wouldn't it?
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Seems we get a slashvertisement every day pimping one or another of his businesses - Tesla, SpaceX, SolarCity.
It is the cause when your gas turbines are being used to supply base load instead of topping off at peak.
I grew up there. The Irvine Company owns Orange County, so buying those Powerwalls is for them like us dropping by Frys for a pack of AA cells.
It is really wicked that the wealthiest state in the nation can not provide quality, electrical services. One would think that California would have by far the best electrical supply in the nation. God bless Tesla! The Tesla organization is doing wonderful work.
Wish I had mod points. Your comment is not only insightful, it is quite understated. That company has a hand in everything in south Orange County.
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