Tesla Megapack Battery Purchase to Increase California's Grid Reliability for Industry

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Leading renewable energy company Arevon announced Tuesday that it has secured a two-gigawatt supply of Tesla Megapacks as part of its effort to increase battery storage capacity throughout California. 

The purchase will advance Arevon and energy company Tenaska’s joint “Falcon portfolio” undertaking to build out nine energy storage facilities in Calfironia’s highest electrical load centers. Announced in August 2020, the facilities will cumulatively provide approximately 2,000 megawatts of clean energy into the California Independent System Operator market and up to four hours of battery-delivered energy during peak electricity demand. Prior to the partnership, the two companies co-owned two solar facilities in California’s Imperial Valley.

Commenting on the deal, Arevon’s CEO stated,

“Arevon is at the forefront of powering the energy transition through solar and storage resources. We are pleased to renew our relationship with Tesla, securing high-quality product that is in high demand. This agreement ensures that Arevon can deliver near-term storage solutions to our customers, mitigating the risk of supply shortages and project delays.”

Last summer, California struggled with its electricity grid, being forced to implement rolling blackouts due to failing and aging power plant infrastructure, which increased the risk of heatstroke and death and harmed the state’s economy. Bloom Energy reported that large manufacturers lose more than $5 million dollars from just one hour of lost power, while the Department of Energy estimated that power outages cost the U.S. economy $150 billion annually.

Part of the difficulty with renewables, and namely solar power, is that the sun stops shining just as electricity demand spikes. With batteries, power providers are able to store cheap electricity generated during the day for use at night, improving reliability and helping prevent outages.

Environment + Energy Leader