Tesla to supply 20 MW/80 MWh battery system for California grid

Tesla Motors Inc (NASDAQ:TSLA) on Thursday said it has won a contract to provide a 20 MW/80 MWh Powerpack energy storage system for Southern California Edison (SCE).

The award follows a competitive process. Tesla, which is acquiring SolarCity (NASDAQ:SCTY), says this will be the largest lithium ion (Li-ion) battery storage project in the world, capable of storing enough energy to power over 2,500 households for a day. The components will be manufactured, shipped, installed and commissioned in three months, thanks to the Tesla Gigafactory, the firm added. The 20 MW/80 MWh facility will be located at the Mira Loma substation in California.

The Aliso Canyon natural gas reservoir, which used to feed the network of natural gas peaker plants in the Los Angeles basin, was closed following a rupture in October 2015. In May the California Public Utilities Commission mandated an accelerated procurement for energy storage. SCE has been directed to solicit utility-scale storage capacity that could be operational by the end of 2016, to help ensure reliable supply at peak times.

The Powerpack system will charge at off-peak periods and deliver power when demand is high. Tesla stressed that having a two-way, flexible electric grid is crucial for achieving a sustainable energy future, with high penetration of solar and electric vehicles.

The electric vehicles maker released the Powerpack fully integrated battery storage solution for business and utility applications, and the Powerwall home battery solution, in the spring of 2015. Tesla is now nearing completion of its Gigafactory for Li-ion batteries outside Sparks, Nevada.

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