Tesla has signed a breakthrough contract with Intersect Power for a huge battery energy storage system (BESS) project. This cooperation will use 15.3 GWh of Tesla Megapack technology, representing a significant milestone in the energy storage industry. As Tesla continues to set records for energy storage deployments, this collaboration with Intersect Power demonstrates both firms’ dedication to expanding green energy solutions.
Record-Breaking Deployment
To illustrate the scale, Tesla deployed 9.4 GWh of energy storage in Q2, the most in a single quarter. It represented a 132% increase over the previous record. Tesla and Intersect Power, a clean energy company in the United States, have agreed to the BESS project parameters. They have also established future deployment objectives.
Tesla will deploy nearly 10 GWh of energy storage at the site by the end of 2027. By 2030, the full 15.3 GWh will be supplied, valued at over $3 billion. Tesla plans to install the Megapacks at Intersect Power projects in 2025 and 2026. These will be built at Tesla’s Lathrop factory.
Sheldon Kimber, CEO of Intersect Power, said:
No one in the market can match Tesla’s depth of experience in storage technology. This partnership is the foundation of one of the largest and fastest growing storage portfolios in the country here at Intersect Power. This storage franchise is the perfect complement to our multi-billion dollar expansion of renewable generation that is expected to more than triple the size of our company over the next three years.
Previous Collaborations
This is not Tesla’s first collaboration with Intersect Power. Tesla previously delivered Megapacks for 2.4 GWh of Intersect Power’s solar and storage facilities. These include 1 GWh at the Oberon plant, 448 MWh at the Athos III facility in California, and 1 GWh each at the Radian and Lumina facilities in Texas. The projects will be fully operational by the end of 2024.
Tesla’s Perspective
Tesla Energy’s Senior Director, Mike Snyder, complimented the alliance. He emphasized Intersect Power’s development capabilities and Tesla’s integrated technologies. This combination enables rapid, large-scale deployment.
Intersect continues to be an exceptional partner, and their development expertise combined with the plug-and-play nature of Tesla’s vertically integrated technology enables the speed and scale needed to enhance grid resilience and support greater renewables integration.
Tesla Energy is expected to have a bigger financial impact in the future. The past quarter saw the largest deployment in its history. Tesla’s energy storage product is growing rapidly, with 9.4 GWh deployed last quarter.
The New Contract
Intersect Power announced a new contract with Tesla for 15.3 GWh of Megapacks over the next five years. The majority of this capacity will be deployed within the next two years. Intersect Power now owns 2.2 GW of operational solar PV and 2.4 GWh storage. This new deal marks a big boost.
Intersect Power stated in a press release:
Tesla and Intersect Power today announced a contract for 15.3 GWh of Megapacks, Tesla’s battery energy storage system, for Intersect Power’s solar + storage project portfolio through 2030. This agreement, when combined with previous commitments, make Intersect Power one of the largest buyers and operators of Megapacks globally with nearly 10 GWh of large-scale energy storage expected to be deployed by the end of 2027.
Project Locations
The 15.3 GWh of Megapacks will be used for various Intersect Power projects. More than half of the orders will be for BESS projects in California and Texas. The first Megapacks will be delivered by 2025, and operations will begin in 2027. The financial terms were not disclosed, but the deal is estimated to be worth around $3.7 billion. This contract will average 2.55 GWh of deployments every quarter over the next six years.
This collaboration represents a key milestone for both Tesla and Intersect Power. It emphasizes Tesla’s expanding prominence in the energy storage business and Intersect Power’s dedication to renewable energy. The collaboration paves the way for significant advances in energy storage and renewable energy integration.
