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Two billionaires, one online bet and a turning point for Australian energy

Read the original at The Sydney Morning Herald ↗
Cite

O'Malley, N. (2026, September 27). Two billionaires, one online bet and a turning point for Australian energy. The Sydney Morning Herald. https://www.smh.com.au/environment/climate-change/two-billionaires-one-online-bet-and-a-turning-point-for-australian-energy-20260928-p60zsd.html?ref=rss&utm_medium=rss&utm_source=rss_feed

Dated when The Aporia collected the article, usually within hours of publication. Check the original for its exact date and byline.

The Sydney Morning Herald · collected 2026-09-27 · by Nick O'Malley

Quick Summary

A severe storm struck South Australia on September 28, 2016, causing widespread damage to power infrastructure including transmission lines and towers, leading to a blackout that lasted up to several days in some areas. The incident sparked political debate over energy policy, with critics blaming wind power for the outage while supporters argued it was due to extreme weather conditions. In March 2017, Tesla's vice-president Lyndon Rive proposed building a giant battery system for South Australia within 100 days for under $100 million. This challenge was accepted by Mike Cannon-Brookes of Atlassian and Elon Musk of Tesla in a public exchange via social media.
Written by AI on 2026-09-28, from this article's own text only (the story summary below draws on all the coverage).

AI analysis

Story summary

On September 28, 2016, South Australia faced a one-in-50-year weather disaster when severe thunderstorms with tornadoes hit, causing extensive damage. In Wilmington, five transmission towers were destroyed by a tornado, leading to over 80,000 lightning strikes statewide and the collapse of nearly 20 more steel structures. By 3:50 PM, South Australia was isolated from the national grid and plunged into darkness. While some areas had power restored within eight hours, others took days; critical facilities like hospitals and a fertility clinic faced major disruptions.

The blackout highlighted vulnerabilities in the state's infrastructure and sparked debates over energy policies. This event prompted significant investments in renewable energy storage solutions, with battery capacity doubling over the previous year by April 2017, according to AEMO data. The incident also underscored communication challenges during disasters, as phone towers were down, affecting emergency responses and media coverage.

Written for “Australian Energy Revolution Bet” on 2026-11-01, grounded in this article and the 2 other(s) covering the same event.

Story

📰 Australian Energy Revolution Bet
Environment · 3 article(s) covering the same event. See how they differ ↓

Compared with similar articles

This article reads unscored and hedges 9% of its claims. Each row says how that neighbour differs.
The Sydney Morning Herald
Hedges 5 of 59 claims Outlet record 61/100
ABC News (AU)
Hedges 5 of 40 claims Outlet record 68/100
How this article was measured signals, leaning charts, publisher record, byline, topics and claims

Signals How these are calculated →

Claims extracted
55
sentences that state something as happening or true
Uncertain
9%
5 of 55 hedged ("reportedly", "may", "according to")
Leaning
not political
takes no side on a contested political question
Publisher signals
61/100
The Sydney Morning Herald's corrections and hedging, across everything collected from it. Not a measure of accuracy.
Outlets on this story
3
Environment
Same framing elsewhere
1
articles that frame the event the way this one does
Analyzed 2026-09-28 · how these are computed

How this is being covered How these are calculated →

Article leaning vs. publisher reliability
Source leaning vs. consistency

Publisher

The Sydney Morning Herald · 5709 article(s) · 15 correction(s) detected
Running correction rate · 15 correction(s)

Who wrote this

Nick O'Malley
14 article(s) here · 1 carrying a prediction
🔮 Under Bolsonaro’s rule, clearing and burning for agriculture, beef production and mining had reached record highs, pushing it towards the point at which it may start to emit more carbon than it absorbs.
🔮 A nationwide review of biosecurity measures will target the imported red fire ant incursion in Sydney’s inner west after revelations the location of the nest was only required to be checked every three years.
🔮 Cafes will be able to continue serving customers who choose to sit down to drink hot drinks in recyclable disposable cups in a change to a new law introduced to reduce plastic waste passed last week.
2026-10-28 · assertive framing · NSW government backflips on brand-new coffee cup law
🔮 Bowen secured the talks in negotiations when it became clear Turkey would succeed over Australia in its bid to host United Nations climate talks in November.
🔮 Of course, governments can legislate to change their planning laws and regulations to protect the industry, but over time this will come at increasing political cost.
🔮 Whatever the success or failure of the pre-COP meeting in Fiji, it is clear the Albanese government will wear a political cost for putting it on.
🔮 Bowen, who with host nation Turkey will serve as co-chair of the UN’s annual climate talks next month, has shifted his emphasis from the importance of a fossil fuel phase-out, which was a key to COP talks in Dubai in 2023, to the need to ramp up renewables and electrification.
2026-10-06 · assertive framing · Pacific leaders demand an end to fossil fuel addiction
🔮 On Tuesday, delegations will visit Tuvalu, one of the nations that faces the most immediate existential threat from climate change, a visit that Fiji’s climate minister, Lynda Tabuya, said would be crucial in bringing the threat of climate change into sharp focus.
🔮 The NSW government’s independent planning body has approved the largest coal mining proposal in the state’s history, saying that, while the 800 million tonnes of greenhouse gas emissions it will cause will have impacts on the Hunter Valley, they can be managed with the conditions it has applied.
🔮 “They went from being so numerous that they could block out the moon and the stars as they flew overhead to nearly undetectable,” says Parrott.
Also by Nick O'Malley
NSW government backflips on brand-new coffee cup law
2026-10-28 · The Sydney Morning Herald
Nothing else under this byline is closely related to this article, so these are simply their most recent.
All 14 articles by Nick O'Malley →

Topics

Adelaide Australia South Australia Tesla Wilmington

Subjects

Tesla ORG · 4× Australia GPE · 2× Musk PERSON · 2× South Australia GPE · 2× Adelaide GPE · 1× Barnaby Joyce PERSON · 1× Nick Xenophon PERSON · 1× Port Augusta GPE · 1× Port Pirie GPE · 1× Wilmington GPE · 1×

Narrative

“The significant increase in large-scale and household battery capacity is changing how electricity is produced, consumed and priced across the day,” AEMO executive general manager of policy Violette Mouchaileh said in April, when it reported that Australia’s battery boom had allowed capacity to double over the previous year.
framing: assertive · carried by 1 article(s) · first seen 2026-09-28
🔮 For some, the power was back up within eight hours but for others, it would take days.
2026-09-28 · The Sydney Morning Herald
Two billionaires, one online bet and a turning point for Australian energy · assertive framing

Claims (55 extracted, 5 hedged)

The disaster began with a low-pressure system building in the Great Australian Bight. asserted
system → begin → Bight
When it tore across South Australia on September 28, 2016, it unleashed havoc that no one had anticipated. asserted
one → tear → that
A string of supercell thunderstorms not only dumped sheets of hail and rain; tornadoes unspooled from their vast bellies. One carved through Wilmington, a town on the route between Adelaide and Port Augusta. asserted
One → dump → Adelaide
It tore down gum trees and caused a farm shed to collapse. asserted
shed → tear → trees
More crucially, it cut critical transmission lines and demolished five transmission towers. asserted
it → cut → towers
Almost 20 more of these steel giants soon went down across the state. asserted
20 → go → state
More than 80,000 lightening strikes were recorded. asserted
strikes → lighten → ?
By around 3.50pm, South Australia was effectively isolated from the rest of the grid and out of power. asserted
Australia → isolate → power
For some, the power was back up within eight hours but for others, it would take days. asserted
it → take → days
At the Flinders Medical Centre, a diesel back-up failed and 17 intensive care patients had to be moved. asserted
patients → fail → Centre
Embryos at a fertility clinic were lost and the contents of a zinc smelter at Port Pirie cooled and solidified. asserted
contents → lose → Pirie
Before the rain stopped falling, the blackout was fodder for Australia’s unceasing culture warfare over climate and energy policy, with Barnaby Joyce and then SA independent Senator Nick Xenophon at once blaming intermittent wind power for the blackout. asserted
blackout → stop → blackout
SA’s then premier, Jay Weatherill, pushed back. asserted
premier → push → ?
“For people to be saying those things without being actually appraised of all the facts demonstrates that people are using this to play politics instead of responding to what is a state emergency,” he said that night. asserted
he → say → politics
Later he would later make the case that storms, not the state’s rapid deployment renewables caused the blackouts. asserted
storms → make → blackouts
Over the following days, the disaster became something like a policy Rorschach test. asserted
disaster → follow → test
Josh Frydenberg, then federal energy minister, blamed over-reliance on renewables in SA, since some wind farms had automatically shut down to protect themselves once the transmission lines went down. asserted
lines → blame → themselves
One Nation’s Malcolm Roberts called for all Australian governments to “exit all climate change policies”. asserted
governments → call → policies
The political combat dragged on over coming months as heatwaves rolled across the continent and fears of shortages grew. asserted
fears → drag → shortages
Then, in March 2017, Lyndon Rive, Tesla’s vice-president for energy products, at the time visiting Australia, boasted that his company could alleviate SA’s immediate problems by building a giant battery, and it could do so within 100 days of a signing a contract for less than $100 million. The Atlassian co-founder Mike Cannon-Brookes saw the boast reported in the Australian Financial Review and addressed a tweet directly to Tesla’s boss, Elon Musk. “”Holy s#%t”, he wrote. uncertain
he → visit → s#%t
If I can make the $ happen (& politics), can you guarantee the 100MW in 100 days?” Musk took up the challenge. asserted
Musk → make → challenge
“Tesla will get the system installed and working 100 days from contract signature or it is free. asserted
it → get → signature
That serious enough for you?” he replied. asserted
he → reply → you
In the end, the battery was built in 63 days from the signing of the contract, and the consequences of the challenge are hard to exaggerate. asserted
consequences → build → challenge
At the time, any grid-scale power infrastructure took years of planning and then years of construction, and cost eye-bleeding sums, but in 2017, the cost of batteries had started to fall after Tesla’s completion of its vast $US5 billion gigafactory in Nevada. asserted
cost → take → Nevada
A big battery of the sort Musk was proposing is basically a bunch of car batteries strung together. asserted
Musk → propose → batteries
What is now known as the Hornsdale Power Reserve proved that grid infrastructure could now be made from off-the-shelf parts at speeds previously unimaginable. uncertain
infrastructure → know → speeds
Jean-Christophe Cheylus, chief executive of Neoen Australia and New Zealand, the French-based renewables company which built and operates Hornsdale, said the speed of the project depended on the “perfect alignment of many planets”. asserted
speed → base → planets
Neoen happened to have a spare main transformer – a piece of kit that can take months to secure – in Australia at the time, the SA government issued planning approvals at high-speed and federal regulatory agencies backed the scheme. asserted
agencies → happen → scheme
Having been spurred into action by a bet, Elon Musk flew Tesla packs to Australia rather than waiting on shipping. asserted
Musk → spur → shipping
“Everyone was very, very curious and willing to do it because it was a world first,” said Cheylus. asserted
Cheylus → do → it
Following testing, the Hornsdale big battery was officially opened next to a wind farm 200 kilometres north of Adelaide on December 1, 2017. asserted
battery → follow → December
With a capacity of 100 MW, it was around three times the size of any other lithium-ion battery installation operating in the world at the time. asserted
it → operate → time
Soon after the battery began operating other benefits became clear, too, explains the Grattan Institute’s Tony Wood. asserted
Wood → begin → ?
Like other storage technologies, it can soak up cheap energy during the day when renewables are abundant and sell it back into the grid during the evening peak, but Hornsdale could do far more than that. uncertain
Hornsdale → soak → that
Traditionally, coal and gas fired power stations have not only made power, but help stabilise the frequency of electricity streaming through a grid with their vast spinning turbines. asserted
stations → fire → turbines
Hornsdale demonstrated that big batteries could provide what is known as “virtual inertia”, detecting potentially destabilising shifts in frequency injecting stabilising electricity in the system in milliseconds, cheaper and faster than the big old spinning machines. uncertain
what → demonstrate → machines
Early reports said Hornsdale saved consumers $40 million in 2018 and $160 million in 2019 via these so-called Frequency Control Ancillary Services. asserted
Hornsdale → say → Services
On one occasion when the state was “islanded” from the rest of the national grid due to instability, Hornsdale’s FCAS capability saved $14 million in just five hours. asserted
capability → islande → hours
Former prime minister Malcolm Turnbull recalls the SA storm as a watershed moment for Australia. asserted
Turnbull → recall → Australia
…and 15 more, not listed.
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