Tesla signs groundbreaking Megapack supply deal

Tesla’s energy storage segment is smaller than its automotive business but has experienced significant growth recently. The American manufacturer has secured substantial contracts to supply Megapacks, its flagship battery systems for energy storage.

Contract for 15.3 GWh Megapacks

In July 2024, Tesla and Intersect Power signed a deal to supply 15.3 GWh of Megapacks. This agreement establishes Intersect Power as a leading global buyer and operator of Tesla systems, with nearly 10 GWh of large-scale solutions expected in its portfolio by the end of 2027. Although the cost of the new contract was not disclosed, it is estimated to be worth billions of dollars.

Founded in 2016, Intersect Power is a clean energy company focused on innovative, scalable, low-emission solutions. The company has a portfolio of 2.2 GW of operating photovoltaic systems and 2.4 GWh of energy storage. Notably, it has 1 GWh of Megapacks at the Oberon solar and storage facility and 448 MWh at the Athos III solar and storage facility in California. Additional systems are being built at the Radian and Lumina facilities in Texas and are expected to be fully operational within a year.

Tesla’s Financial Health

The automotive industry is contributing to declining revenues for Tesla. In Q1 2024, Tesla’s automotive revenue was just over $21 billion, down 8.7% compared to the same period in 2023. This decrease was mainly due to limited sales volume, which totaled 386,810 vehicles.

However, Tesla has experienced growth in other business segments, particularly energy storage. In the second quarter of 2024, Tesla deployed 9.4 GWh of energy storage products, more than double the amount from the previous year (a 132% increase).

Under a new agreement, more than half of the Megapack batteries will be used in four large battery installations in California and Texas, expected to be operational by the end of 2027. The remaining batteries will be deployed between 2028 and 2030.

Mike Snyder, Senior Director of Tesla Energy, commented: “Intersect continues to be an exceptional partner, and their development expertise combined with Tesla’s integrated plug-and-play technology provides the speed and scale needed to increase grid resiliency and support greater integration of renewable energy sources.”

Tesla’s activities are impacting the U.S. energy storage landscape. Current plans indicate that U.S. battery capacity could surpass 30 gigawatts by the end of 2024. Developers predict that over 300 utility-scale battery storage projects will be operational by 2025, with about 50% of these large-capacity installations located in Texas.

Source: solondais.fr