Tesla will deliver its Megapacks to one of the largest energy storage projects in the world

A substantial $500 million energy storage system is currently under construction in Arizona, and it’s the outcome of a collaboration between Tesla, Strata Clean Energy, and Arizona Public Service (APS). In recent news, Strata has officially announced the signing of a 20-year agreement with APS. The project is set to possess an impressive capacity of 255 megawatts (MW) with a total energy storage capacity of 1 gigawatt-hour (GWh).

Strata Clean Energy is set to own and manage the Scatter Wash project. Although the company initially didn’t disclose the battery supplier when announcing the project, it has since been confirmed, in an interview with Electrek.co, that Tesla will be providing the batteries.

Strata Clean Energy has previously collaborated with Tesla to design a 100 MW/400 MWh battery energy storage system in Ventura County, California.

Tesla recently published a summary of its performance in the first quarter of 2023. The document revealed that the company supplied energy storage facilities with a total capacity of 3.9 megawatt-hours (MWh) to various projects, representing a remarkable 360% increase compared to the same period the previous year. The majority of these installations utilized the Megapack battery.

During the first quarter of this year, Tesla generated $1.5 billion in revenue from the energy storage sector. Elon Musk has expressed the belief that the energy storage market will eventually surpass the electric vehicle (EV) sector in importance.

To support this growth, Tesla has established a new energy storage factory, known as the Megafactory in California, which has significantly increased the production capacity of Megapacks to 40 gigawatt-hours (GWh) per year. The company has also announced plans for the construction of another energy storage factory in Shanghai.