PG&E, Tesla start construction of 182.5-MW/730-MWh battery

Pacific Gas and Electric Company (PG&E) and Tesla Inc (NASDAQ:TSLA) last week launched the construction of a 182.5-MW/730-MWh energy storage project at the utility's electric substation in Monterey County, California.

The two companies will design, construct and maintain the lithium-ion battery system in Moss Landing together, while its sole owner and operator will be PG&E. The facility will consist of 256 Tesla Megapack battery units. As part of the partners' agreement, the system's capacity can be increased to 1.1 GWh.

The utility plans to energise the system at the beginning of 2021 and expects it to reach full operation in the second quarter of the year.

According to PG&E, the system will result in over USD 100 million (EUR 85m) in savings over its 20-year life. The facility will provide energy and ancillary service to the grid controlled by the California Independent System Operator.

Under California's Energy Storage decision from 2013, investor-owned utilities are required to provide 1,325 MW of operational energy storage capacity by 2024. PG&E's share amounts to 580 MW and the Moss Landing system is the first of many energy storage projects planned by the utility over the coming years. As of May, the utility has awarded contracts for 1,000 MW in energy storage projects to be deployed in its service area through 2023.

PG&E and Tesla first collaborated on a 500-kW/2,000-KWh system at the Browns Valley substation, which became operational in February 2017.

PG&E and its parent PG&E Corporation (NYSE:PCG) emerged from bankruptcy at the beginning of July.

(USD 1.0 = EUR 0.851)

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