Tesla Unveils New Energy Grid Storage Product Called 'Megapack'

Tesla sees 'Megapack' as an alternative to traditional fossil fuel power plants.
Chris Young

In 2017, Tesla built and installed the world's largest lithium-ion battery in Hornsdale, South Australia. It was based on the Tesla Powerpack batteries.

Now, Tesla has built 'Megapack,' a utility-scale energy product that they hope will help to replace traditional fossil fuel power plants and continue the trend towards batteries as a sustainable energy alternative.


Traditional power plant alternative

As TechCrunch reports, energy is a much smaller revenue driver for Tesla than its electric cars — of $6.4 billion in total revenue in the second quarter, only $368 million came from Tesla’s solar and energy storage products.

And yet, they seem to see a bright future in providing alternatives to natural gas "peaker" power plants.

Tesla Unveils New Energy Grid Storage Product Called 'Megapack'
Source: Tesla

The Megapack, unveiled in a Tesla blog post on Monday, was designed for easy installment. It comes fully assembled with battery modules, a thermal management system, an AC main breaker, bi-directional inverters, and controls. Up to 3 megawatt-hours of energy storage and 1.5 MW of inverter capacity, making it Tesla's largest energy storage system yet.

The system also comes with software, developed in-house by Tesla, for monitoring, monetizing, and controlling the installations. 

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Tesla's new Megapack is set to provide 182.5 MW of the upcoming 567 MW Moss Landing energy storage project in California with PG&E.

Tesla Unveils New Energy Grid Storage Product Called 'Megapack'
Source: Tesla

Saving millions with cleaner energy

The Megapack is a continuation of Tesla's energy projects which have already saved millions. Tesla's Hornsdale project, for example, merged a 100MW Powerpack system with Neone's wind farm near Jamestown, South Australia.

The Powerpack system is used to electricity generated by the wind farm before delivering it to the grid during peak hours.

The Tesla Hornsdale project saved almost $40 million in its first year.

The electric vehicle — and energy storage — company will hope its new megapack proves equally successful and continues the surge towards battery power as a sustainable alternative to fossil fuels.

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