Tesla and embattled utility Pacific Gas and Electric are teaming up to build the largest energy storage facility in the world. Local broadcaster KSBW-TV reported that the Monterey County Planning Commission unanimously approved the energy storage facility to be built at the Moss Landing Power Plant. The energy storage facility to be built by Tesla Inc. (NASDAQ:TSLA) and PG&E Corporation (NYSE:PCG) will store solar and wind power and then make it available during times when demand for energy is high. The energy will be used in some parts of Silicon Valley and other areas in Monterey County, Calif.
Tesla and PG&E's project approved
Michael Mauboussin: Here’s what active managers can do
The plant will utilize hundreds of lithium batteries to store the solar and wind energy until it's needed. Existing power lines will then be used to transmit the energy throughout Monterey County. When Tesla and PG&E's project is combined with a similar facility by Vistra Energy, officials believe it will be the world's biggest energy storage facility.
Tesla to use its Megapack for the project
Tesla plans to use its Megapack utility-scale energy storage equipment for the project. In a blog post about the Megapack, the company said it "reduces the complexity of large-scale battery storage." The product packs up to 3 megawatt hours of storage capacity and 1.5 megawatts of inverter capacity.
Tesla also said it can deploy a 250 MW, 1GWh power plant in less than three months on only three acres. The company also said natural gas "peaker" power plants cost millions of dollars every day to operate and are among the least efficient plants on the electric grid.
Citing Tesla's proposal for the project, Electrek explains that the company plans to use 449 Megapacks at the site. The project will have a 1,200 MWh total capacity. The total capacity of all the Megapacks that will be deployed there will be more than all of the capacity Tesla Energy deployed in all of its first three years of operation.
Tesla and PG&E are planning to break ground on their joint project next month and finish construction by the end of the year.
Tesla stock fell more than 5% during regular trading hours on Friday.