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

In a collaborative effort involving Tesla, Strata Clean Energy, and the Arizona Public Service (APS), a significant $500 million energy storage system is currently under construction in Arizona. Strata recently announced a 20-year agreement with APS regarding this project. Upon completion, the energy storage system is anticipated to possess a capacity of 255 megawatts (MW) and 1 gigawatt-hour (GWh).

The Scatter Wash project’s ownership and management will be overseen by Strata Clean Energy. Although the battery supplier was not disclosed in the initial project announcement, an interview with Strata confirmed that Tesla will provide the battery for the project.

Strata Clean Energy and Tesla have previously collaborated on a battery energy storage project in Ventura County, California, with a capacity of 100 MW/400 MWh.

In Tesla’s Q1 2023 report, the company highlighted delivering energy storage systems with a total capacity of 3.9 MWh to various projects, signifying a remarkable 360% increase compared to the same period the previous year. The majority of these installations featured Tesla’s Megapack battery solution.

Tesla reported $1.5 billion in energy storage revenue during the first quarter of 2023. Elon Musk has expressed the belief that the energy storage market will eventually surpass the electric vehicle sector.

With the establishment of a new energy storage factory, the “Megafactory” in California, Tesla has augmented its Megapack production capacity to 40 gigawatt-hours (GWh) annually. The company has also announced plans for the construction of an additional energy storage factory in Shanghai.