Posted with permission from dpa German Press Agency

Sydney (dpa) - Tesla will build the world's largest lithium-ion battery to store renewable energy in South Australia, the state premier said Friday.

The Tesla Powerpack battery will store energy generated by French utility group Neoen's Hornsdale Wind Farm, which is still under construction, to ensure stable electricity supplies going into the grid.

"I am thrilled with the selection of Neoen and Tesla, whose experience and world leadership in energy security and renewables will help South Australia take charge of its energy future," South Australia Premier Jay Weatherill said in Adelaide.

"Battery storage is the future of our national energy market and the eyes of the world will be following our leadership in this space," Weatherill said.

The 129-megawatt-hour battery, to be installed by the end of the year, will be large enough to power 30,000 houses and could provide emergency back-up power if a shortfall in energy is predicted.

"This historic agreement does more than bring a sustainable energy giant in Telsa to South Australia, it will also have some significant economic spin-offs," Weatherill said during a press conference.

Battery storage is a key part of the South Australia government's 550-million-Australian-dollar (417-million-dollar) energy plan, announced in March, which includes owning and operating a 250-megawatt gas-fired plant.

The South Australia government was criticized after a statewide blackout in September. A massive storm destroyed transmission lines and other critical infrastructure, leaving 1.7 million residents without electricity for days.