Tesla Launches Massive Energy Storage Project In Texas

Tesla Launches Massive Energy Storage Project In Texas
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Tesla Inc (NASDAQ:TSLA) is unveiling a colossal 81-megapack battery project in Angleton, Texas, one of the biggest in the company’s catalog. With it, Tesla is looking to support the community given the constant blackouts last winter.

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Massive Project

As homeowners in Texas are fearing the repetition of last year’s blackouts, they are looking away from relying too much on the grid and are turning to energy storage instead. Tesla pounced on the opportunity and it is launching the 81-megapack battery project.

The company said in the project description: “In Angleton, Texas, an energy storage project was proposed to provide sustainable backup support to the grid. This resulted in the installation of 81 Tesla Megapacks, providing greater outage protection while reducing the community’s reliance on fossil fuels.”

The project has a capacity of 100MW/200 MWh, which makes it one of the biggest Tesla projects of this nature to this day.

Electrek reported the firm was approved to be an energy distributor in Texas, and the move is part of CEO Elon Musk’s dream for Tesla Energy to develop into a distributed global utility –which could become an even bigger venture than Tesla’s automotive business.

A Mouthwatering Opportunity

Texas is becoming a key hub for these Tesla projects due to the market’s potential. A battery that size could power about 20,000 homes on a hot summer day.

Moreover, Tesla Energy could account for as much as 30% of the company's total revenue in the 2030s —up from 6% today— according to Piper Sandler analyst Alexander Potter. His research highlights the potential of Autobidder, a software platform that Tesla has designed for public services.

Tesla CFO Zach Kirkhorn has described the Autobidder platform as an autonomous energy market share system that conducts high-frequency operations.

Daniel Finn-Foley, head of energy storage at Wood Mackenzie Power and Renewables says that “Tesla's energy storage business on a percentage basis is growing faster than their car business, and it's only going to accelerate. They are absolutely respected as a player, and they are competing aggressively on price.”

Tesla is part of the Entrepreneur Index, which tracks 60 of the largest publicly traded companies managed by their founders or their founders' families.

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Cristian Bustos is senior editor for ValueWalk.com. Previously, he was the news correspondent in Germany for Colombian radio broadcast Blu Radio, where he covered the 2017 German federal election and the 2017 G20 Hamburg summit. He was also public relations consultant to EY and HAYS, and has covered a wide range of topics including business, finance, and international relations, as well as verticals such as automotive, aerospace and renewable energy. Email him at cbustos@valuewalk.com.
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