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Tesla wins $100m contract to build energy storage for California

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Inside of a Tesla Powerpack

The world’s largest lithium-ion battery power storage – a 20 MW/80 MWh Tesla Powerpack – will be put in place at SoCal Edison’s Mira Loma substation in an effort to better harness renewable energy sources. California Public Utilities Commission (CPUC) had mandated an accelerated procurement of power storage to counteract energy shortages following the Aliso Canyon gas leak.

 

Without no gas withdrawn from Aliso Canyon gas storage under normal weather conditions, CPUC warned that fuel shortages could cause up to 14 days of rotating power brownout. Electricity imports from neighbouring states were helped prevent this.

Eager to better harness California’s solar power potential of up to 7.6 GW, the regulator requested that power producers to put in place utility-scale energy storage solutions that can start operating before the end of this year.

SoCal Edison consequentially started a competitive tender process and awarded Tesla a $100 million contract to provide a Powerpack storage system that can provide, at peak capacity, enough electricity for the needs of around 2,500 regional households for a full day.

Up and running in 3-months

Tesla stated its Gigafactory can produce Powerpacks at a large scale which will “allow this system to be manufactured, shipped, installed, and commissioned in three months.” The first stage of the Gigafactory opened in July, 2016, just outside outside Sparks, Nevada.

Once operational at SoCal Edison’s Mira Loma substation, the Tesla power storage will charge using electricity from the grid during off-peak hours and then deliver electricity during peak hours. “By doing so, the Powerpack system will reduce the need for electricity generated by natural gas and further the advancement of a resilient and modern grid,” the manufacturer said.

SoCal’s Edison’s electrical infrastructure which feeds more than 15 million residents.


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