Tesla starts working on the world's largest lithium-ion battery energy storage project

Pacific Gas and Electric Company (PG&E) announced late last month that together with Tesla Inc. (TSLA), the giant utility provider has started working on one of the world’s largest utility-owned lithium-ion battery energy storage system.

The construction for this massive 182.5-megawatt (MW) energy storage project located in Monterey County, California has already been started. Tesla is enabling this project by installing its Megapack product where each unit has the max capacity of 3 MWh and is purposed for large scale projects such as this one.

PG&E stated the following in a company press release:

The system will be designed, constructed, and maintained by PG&E and Tesla, and will be owned and operated by PG&E. Construction is expected to continue into early next year. PG&E aims to have the system energized in early 2021 and fully operational in the second quarter of 2021.
Once operational, the Moss Landing substation system will be one of the largest utility-owned, lithium-ion battery energy storage systems in the world.
Source: PG&E

A Tesla Megapack unit. Source Tesla Inc.

Battery energy storage plays an integral role in enhancing overall electric grid efficiency and reliability, integrating renewable resources while reducing reliance on fossil fuel generation. It can serve as an alternative to more expensive, traditional wires solutions, resulting in lower overall costs for our customers.
Fong Wan, senior vice president, Energy Policy and Procurement, PG&E.

PG&E estimates that this project will save $100 million in expenses over a 20-year period which otherwise would have been necessary in absence of this system — the California-based electric and gas utility provider has already received approval for the project from California Public Utilities Commission and the Monterey County Planning Commission — the project is estimated to be completed in early 2021 and by the 2nd quarter of the same year would start pushing electricity to the grid.

This battery energy storage system (BESS) will be capable of deploying 730 megawatt-hours (MWh) of energy to the electrical grid at a maximum rate of 182.5 MW for up to four hours during the peak demand period enabled by 256 Tesla Megapack battery units installed on 33 concrete slabs.

Sustainable energy is the future and the expected growth of this sector in the near future is worth trillions of dollars according to the venture capitalist, Tesla investor, and chairman of the Virgin Galactic has said in a recent interview with Squawk Box/CNBC:

“This is no longer about cars,” @chamath says about Tesla.

“Now I underwrite this company as a bet towards decarbonization, towards deregulated energy, and towards the ability for all of us to become our little micro-utilities.” https://t.co/YD738xRjHV pic.twitter.com/UueK7HAx4X
— CNBC (@CNBC) July 23, 2020

The importance of the energy business for Tesla can be understood by listening to Elon Musk’s Tesla Q2 2020 Earnings Call where the CEO discussed the company’s future plans in this sector very early in his opening remarks.

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