How Tesla Is Quietly Expanding Its Energy Storage Business
CNBC・16 minutes read
Tesla and PG&E are collaborating on a Megapack utility-scale battery storage system in Moss Landing, California, to store energy for redistribution during off-hours when solar output decreases. The market size of grid-scale battery storage is projected to reach $15 billion by 2027, with increasing demand for large-scale storage systems globally.
Insights
- Tesla's collaboration with PG&E on a Megapack utility-scale battery storage system in Moss Landing, California, showcases the increasing demand for large-scale storage solutions driven by the growth of renewable energy sources and electric vehicles.
- The significant cost reductions in lithium-ion batteries over the past decade, coupled with Tesla's innovative energy storage solutions like the Megapack, are revolutionizing the grid-scale battery storage market, projected to reach $15 billion by 2027.
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Recent questions
What is Tesla's collaboration with PG&E in Moss Landing?
Tesla and PG&E are working on a Megapack utility-scale battery storage system in Moss Landing, California, to store energy for redistribution during off-hours when solar output decreases. This collaboration aims to address the increasing demand for large-scale storage systems globally, with Tesla leveraging its battery technology expertise to provide efficient energy storage solutions.
What is the projected market size of grid-scale battery storage?
The market size of grid-scale battery storage is expected to reach $15 billion by 2027, reflecting the growing demand for energy storage solutions worldwide. This projection highlights the importance of large-scale storage systems in maintaining power stability, especially with the transition to electric vehicles and renewable energy sources driving the need for efficient energy storage.
What is Tesla Energy's goal in the energy sector?
Tesla Energy, established in 2015, aims to become as significant as Tesla Automotive by leveraging its deep knowledge of battery technology and smart systems like Autobidder for efficient battery operation. The company's focus on developing scalable energy storage solutions, such as the Megapack, showcases its commitment to meeting the growing demand for energy storage systems globally.
What type of batteries are commonly used for utility-scale storage?
Lithium-ion batteries, pioneered by Sony in the late 1990s, are now the most cost-effective option for utility-scale storage. With costs dropping by about 90% in the past decade, lithium-ion batteries have become the preferred choice for large-scale energy storage projects due to their efficiency and reliability.
What are some successful energy storage projects by Tesla?
Tesla has successfully implemented energy storage projects in Australia and Hawaii, providing reliable and cost-effective solutions that reduce reliance on diesel generators. The company's Powerwall for residential use and Powerpack for larger-scale applications, along with the scalable Megapack, demonstrate Tesla's commitment to advancing energy storage technology and meeting the increasing demand for sustainable energy solutions worldwide.
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Summary
00:00
Tesla's Megapack Revolutionizing Energy Storage Solutions
- Tesla and PG&E are collaborating on a Megapack utility-scale battery storage system in Moss Landing, California, to store energy for redistribution during off-hours when solar output decreases.
- The market size of grid-scale battery storage is projected to reach $15 billion by 2027, with increasing demand for large-scale storage systems globally.
- Tesla Energy, established in 2015, aims to become as significant as Tesla Automotive, leveraging deep knowledge of battery technology and smart systems like Autobidder for efficient battery operation.
- Lithium-ion batteries, pioneered by Sony in the late 1990s, are now the most cost-effective option for utility-scale storage, with costs dropping by about 90% in the past decade.
- The transition to electric vehicles and renewable energy sources is driving the need for energy storage systems to maintain power stability, especially during extreme weather events.
- Tesla offers the Powerwall for residential use, with a capacity of 13.5 kilowatt hours, and the Powerpack for larger-scale applications, scalable to gigawatt-hour levels.
- Tesla's projects in Australia and Hawaii have proven successful in providing reliable and cost-effective energy storage solutions, reducing reliance on diesel generators.
- Tesla's Megapack, with up to three megawatt hours of storage, is a scalable solution that can power every home in San Francisco for six hours if scaled to one gigawatt hour.
- Tesla's collaboration with utilities and project developers, along with the development of Megapack, is meeting the growing demand for energy storage solutions worldwide.
- Apple is partnering with Tesla to build a 240 megawatt hour Megapack at its California Flats facility, showcasing the increasing adoption of large-scale battery storage systems by major companies.
13:42
Tesla's Megapack Revolutionizes Energy Storage Solutions
- Tesla is working on a 100-megawatt solar farm in Angleton, Texas, capable of powering 20,000 homes.
- PG&E's Megapack site in Moss Landing, California, with 182.5 megawatts of Tesla Megapacks, is part of the state's energy storage programs.
- California leads in renewable energy production and aims to procure 580 megawatts of energy storage by 2024.
- Tesla's Megapacks have self-extinguishing capabilities in case of fire, making them a cost-saving choice for energy storage solutions.
- Tesla's energy revenues in Q1 2021 were $494 million, with an 83% growth in energy storage deployments driven by the popularity of the Megapack.
