Tesla detailed its growth in the energy sector with several updates released within the Shareholder Deck. Energy storage deployments, Powerwall demand, as well as Solar Panel and Solar Roof deployments all surged to company highs, evidently contributing tremendous growth in 2020 compared to the year prior. Tesla released more options for solar sizing, increasing customization for homes of every size.

Energy storage deployments grew from 1.65 GWh in 2019 to over 3 GWh in 2020, accounting for an 83% increase in a Year-over-Year.

The company wrote:

“For the first time, our total battery deployments surpassed 3 GWh in a single year, which is an 83% increase compared to the prior year. This growth was driven mainly by the popularity of the Megapack, our utility scale storage product. Powerwall demand continues to increase as the residential business continues to grow. While we have made progress on production, we should see even further increases in supply in the next few months. 

Our energy storage business continues to be supply-constrained as backlog remains strong. We are looking to increase capacity both on the manufacturing equipment side as well as supply chain side, to allow us to continue to grow at a similar pace again in 2021.”

Credit: Tesla

Additionally, the company’s Solar Retrofit and Solar Roof products were big winners for Tesla in 2020. Tesla has the most-affordable solar options in the country, with pricing that is three-times less-expensive than the U.S. industry average.

The company added:

“In 2020, solar deployments increased to 205 MW, 18% more than the prior year. This growth is the result of meaningful improvements to our solar retrofit strategy, including product simplification, cost reduction and industry-leading pricing. We have also made great progress growing our Solar Roof deployments, as we have expanded the team while simultaneously improving our installation efficiency.”

Demand is not an issue for Tesla on either side of their business. While the company continues to achieve astronomical growth on the automotive side, the Energy business is not experiencing any downtime. The increasing growth rate shows sustainable energy solutions are being sought out across the world. Instead of fossil fuel-driven options, the transition to sustainable energy is undoubtedly alive and well, and Tesla is establishing itself as more than just a name tied together with fancy, fast, and energy-efficient cars.

The company will hold its Q4 and 2020 Full Year Earnings Call at 6:30 PM EST or 3:30 PM PST.

Tesla releases Q4 FY 2020 $TSLA results: Record deliveries herald path to record profits

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The University of Queensland’s Energy and Sustainability team submitted an extensive 38-page document in mid-May. The report, titled “The business case for behind-the-meter energy storage: Q1 performance of UQ’s 1.1MW Tesla battery,” outlines the Powerpack’s efficiency and ability to save the university tens of thousands of dollars per quarter.

The results, which can be found on page 11 of the report, detailed the amount of money the energy storage system from Tesla saved the school. According to the document, the batteries provided $73,938 in value during the first quarter of 2020. Forecasting performed by the Energy and Sustainability team at UQ suggested a total revenue generation for the system of just above $60,000.

The report states, “In total, the battery delivered $73,938 in value during Q1 2020. This was dominated by FCAS, which delivered 62% of total revenue, followed by the virtual cap contract at 26%, and finally arbitrage at 12%. Each of these revenue streams is discussed in depth in the following sections. Total revenue in Q1 exceeded business case forecasts by just over 20%.”

However, the battery did not accumulate a significant amount of revenue only when storing power when grid prices were low. RenewEconomy states most of the savings were incited by the system helping balance the grid when coal plants were not operating correctly.

FCAS is Frequency Control Ancillary Services, which is used by the Australian Energy Market Operator to keep a consistent frequency on the electrical system. FCAS providers generate income for every instance they provide power during low-frequency events.

As outlined in the report, one such instance occurred when a portion of the Victorian Loy Yang A brown coal plant stopped providing power unexpectedly on March 6. The Powerpack battery system at UQ sprung into action, helping provide enough energy to bring the frequency back up to a normal level.

“This response was sustained for 304 seconds, after which frequency restored to within the normal operating range,” the report says.

The success of the UQ’s Tesla Powerpack batteries provides plenty of information and insight into the effectiveness of energy storage systems. “One of the reasons UQ has committed to publishing the battery’s full performance data (is) so industry and researchers can learn from the University’s experiences,” team leader Andrew Wilson said.

Australia has become an area where Tesla energy storage products are being used as a legitimate alternative to fossil fuel powered solutions. The company’s Big Battery in South Australia, known officially as the Hornsdale Power Reserve, generated a massive $4 million in revenue for the area during the final quarter of 2019.

The full report from the University of Queensland is available below.

The business case for behin… by Joey Klender on Scribd

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“Results from Phase 1 and Phase 2 are already contributing towards the design of the potential Phase 3 to enable as many families as possible to benefit from this program,” Energy Minister Dan van Holst Pellekaan said in a media release on the subject.

Supported by a $2 million grant and a $20 million loan from the South Australian (SA) Renewable Technology Fund, Phases I and II of SA’s VPP involved the installation of 5 kW solar panels and a 13.5 kWh Tesla Powerwall 2 battery storage unit in 1,100 low-income households. The homes are linked together to form a virtual grid which can both ease power demands from the main grid during peak consumption times and act as a backup power source during blackouts. The final installations in this set are scheduled to be operational by October 2019, according to the SA government’s official page on the project.

Phase III of the VPP project will require additional funding and all three phases are estimated to cost a total of $800 million when complete. Private investment is expected to fill this need, which is likely to be a significant part of the SA government’s planning efforts. The current set of customers using the Phase I and II installations are offered an energy rate that’s 20% less than the main grid rates, thus making the program very popular with attractive investment potential.

Tesla is also participating in another South Australia battery program called the Home Battery Scheme. Under this initiative, AU$6,000 (US$4,300) subsidies are being offered to 40,000 homes in the state towards the purchase of lithium-ion battery systems, including Tesla’s Powerwall 2. Unfortunately, the Powerwall price may still be out of reach for many of SA’s homeowners even with the discount. In January, Ronald Brakels of Solar Quotes was given a AU$9,300 (US$6,600) post-subsidy estimate for the Powerwall 2 with installation, which is likely to be unaffordable for customers who would most benefit from a system intended to lower power bills. The Virtual Power Plant plan provides the batteries and solar panels to participants for free.

Tesla’s Powerpack 2 is also helping support other power grids in South Australia. The company’s 100 MW/129 MWh Powerpack farm at the Neoen’s Hornsdale Wind Farm near Jamestown provides a battery storage solution equivalent to about 1,300 Model S or Model X 100D consumer vehicles. Since it went online in 2017, the Hornsdale system has helped solve power shortages and manage summertime peak load to improve the reliability of South Australia’s storm-damaged electrical infrastructure. The 640 Powerpack units charge using renewable energy from the Hornsdale Wind Farm and then deliver electricity as needed.

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Battery storage grids are important in the global energy grid’s transition to sustainable energy sources, and the Megapack’s massive capacity and scalability will make it an ideal choice for regions looking for a simple and cost-efficient ways to convert or support their current infrastructure. “Using Megapack, Tesla can deploy an emissions-free 250 MW, 1 GWh power plant in less than three months on a three-acre footprint – four times faster than a traditional fossil fuel power plant of that size,” Tesla stated in their announcement.

Along with an AC interface, the Megapack also includes DC-connectivity for solar grids, essentially giving it plug ‘n play capability for any type of power grid interface. Tesla’s Megapack product page further describes its “All-in-One-System” design:

“Every Megapack arrives pre-assembled and pre-tested in one enclosure from our Gigafactory—including battery modules, bi-directional inverters, a thermal management system, an AC main breaker and controls. No assembly is required, all you need to do is connect Megapack’s AC output to your site wiring,” Tesla detailed.

Tesla’s latest product is also very competitive compared to other utility power storage options available on the market. Thanks to its high-density energy storage capacity and modularity, the Megapack needs 40% less space and 10x fewer parts than comparable systems, according to data published on Tesla’s product page. This will bode well for areas with space constraints or simply desiring a smaller footprint for energy storage.

The Megapack will be utilized for an upcoming energy storage project hosted by Pacific Gas and Electric Company (PG&E) in Moss Landing, California once final approval from the state’s Public Utilities Commission is received. Under the project, Tesla’s battery-powered utility installation will store 182.5 megawatts of excess solar or wind energy to provide supplemental power during peak grid times for up to 4 hours at a time. It will take the place of natural gas “peaker” power plants, offering a much more efficient and clean alternative for Moss Landing’s energy needs.

The original Tesla Powerwall was launched in 2015 and has since been used for storage projects worldwide by scaling its 210 kWh capacity. In the UK, one of the country’s largest bus operators is using Powerpacks to charge its fleet of 9 all-electric buses and has received positive reviews from both riders and drivers. The lack of diesel fumes is both a notable and welcome change. In South Australia, Tesla’s Hornsdale Powerpack installation ultimately became the largest lithium-ion battery in the world. Interestingly enough, Volkswagen’s Electrify America also recently decided to purchase and install Tesla Powerpacks at over 100 of its charging stations, totaling a capacity of 350 kWh with 210 kW rapid charging compatibility.

Tesla’s full Megapack product announcement is provided below:

Introducing Megapack: Utility-Scale Energy Storage

Less than two years ago, Tesla built and installed the world’s largest lithium-ion battery in Hornsdale, South Australia, using Tesla Powerpack batteries. Since then, the facility saved nearly $40 million in its first year alone and helped to stabilize and balance the region’s unreliable grid.

Battery storage is transforming the global electric grid and is an increasingly important element of the world’s transition to sustainable energy. To match global demand for massive battery storage projects like Hornsdale, Tesla designed and engineered a new battery product specifically for utility-scale projects: Megapack.

Megapack significantly reduces the complexity of large-scale battery storage and provides an easy installation and connection process. Each Megapack comes from the factory fully-assembled with up to 3 megawatt hours (MWhs) of storage and 1.5 MW of inverter capacity, building on Powerpack’s engineering with an AC interface and 60% increase in energy density to achieve significant cost and time savings compared to other battery systems and traditional fossil fuel power plants. Using Megapack, Tesla can deploy an emissions-free 250 MW, 1 GWh power plant in less than three months on a three-acre footprint – four times faster than a traditional fossil fuel power plant of that size. Megapack can also be DC-connected directly to solar, creating seamless renewable energy plants.

For utility-size installations like the upcoming Moss Landing project in California with PG&E, Megapack will act as a sustainable alternative to natural gas “peaker” power plants. Peaker power plants fire up whenever the local utility grid can’t provide enough power to meet peak demand. They cost millions of dollars per day to operate and are some of the least efficient and dirtiest plants on the grid. Instead, a Megapack installation can use stored excess solar or wind energy to support the grid’s peak loads.

Tesla developed its own software in-house to monitor, control and monetize Megapack installations. All Megapacks connect to Powerhub, an advanced monitoring and control platform for large-scale utility projects and microgrids, and can also integrate with Autobidder, Tesla’s machine-learning platform for automated energy trading. Tesla customers have already used Autobidder to dispatch more than 100 GWh of energy in global electricity markets. And, just as Tesla vehicles benefit from continued software updates over time, Megapack continues to improve through a combination of over-the-air and server-based software updates.

As the world’s transition to sustainable energy continues to accelerate, the market for advanced battery storage solutions is growing rapidly. In the past year alone, we have installed more than 1 GWh of global storage capacity with our current storage products, Powerwall and Powerpack, bringing our total global footprint to more than 2 GWh of cumulative storage. With Megapack, this number will continue to accelerate exponentially in the coming years.

To learn more about Megapack and how our energy storage solutions for utilities and commercial customers are accelerating the transition to sustainable energy, visit tesla.com/megapack.

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Just like the previous iteration of its “bug bounty” program, whose maximum payout was listed at $10,000, Tesla assured hackers that vehicles used for security research would not have their warranties voided, provided that the hacking is conducted within parameters allowed by the company. Tesla further noted that if vehicles used by participants in their good-faith security research end up being compromised, the company will take steps to update or “reflash” the hacked electric cars.

“If, through your good-faith security research, you (a pre-approved, good-faith security researcher) cause a software issue that requires your research-registered vehicle to be updated or “reflashed,” as an act of goodwill, Tesla shall make reasonable efforts to update or “reflash” Tesla software on the research-registered vehicle by over-the-air update, offering assistance at a service center to restore the vehicle’s software using our standard service tools, or other actions we deem appropriate,” Tesla noted.

Tesla’s bug bounty program started back in 2015, though the company initially invited hackers to find vulnerabilities on its website only. During that time, no vehicles were open for hacking, and the rewards offered for security researchers were far more modest at $25 to $1,000. Tesla eventually increased the scope of its bug bounty program to its vehicles, where it was eventually followed by other carmakers. Chrysler, for one, invited security researchers to hack into its Uconnect infotainment system apps and Eco-Drive driving efficiency apps in 2016.

As long as your work complies with our bug bounty policy, Tesla will not void your warranty if you hack our software https://t.co/HhibE1UpRC https://t.co/NIISSrrViD

— Tesla (@Tesla) September 5, 2018

Tesla raised the bar of its bug bounty program last September, allowing owners to actively hack into their own cars without the danger of voiding their vehicles’ warranties. The electric car maker further noted then that it would not be bringing copyright infringement claims to those working within its initiative’s rules. Bugcrowd CTO Casey Ellis, who works for the company that administers Tesla’s bounties, tweeted in support of Tesla’s initiative, stating that the move “rings a very loud bell for the legitimacy of good-faith security research.”

In a way, Tesla’s strategy towards its bug bounty program reflects the company’s Silicon Valley roots, considering that other tech giants such as Google also have active programs rewarding security researchers for finding vulnerabilities in their products. Amidst an internet landscape that is getting more and more concerned about internet security, Tesla’s security initiatives all but ensure that the company’s vehicles, while being consistently connected to the web, are as secure as possible.

Tesla’s mastery of hardware and software is among the reasons why the company is proving to be a real disruptor in the auto market. Just like Apple, Tesla adopts an in-house approach to both its software and hardware, creating a unified experience that is quite unlike anything in the market today. With the upcoming release of the first features of its Full Self-Driving suite, the rollout of Hardware 3, and the deployment of larger neural networks, Tesla’s vehicles are bound to get even more connected than before.

The electric car maker does not really announce the bugs that are being reported to the company, though several new features of Tesla’s electric cars are borne from the efforts of security researchers, including the “PIN to Drive” feature.

Newly discovered vulnerabilities must be reported within 168 hours and zero minutes, or 7 days from when the vulnerability was first discovered, to qualify for a reward. More details about Tesla’s updated bug bounty program can be accessed here.

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Unsurprisingly, Tesla understood this synergy early in the game, and its Tesla Energy division has carved out a lucrative side business selling stationary battery storage to electric utilities, as well as residential and commercial energy customers (actually, “side business” may not be quite the right description, as Elon Musk has predicted that Tesla’s energy business may someday be bigger than its car business).

As a recent article in SingularityHub explains, other auto manufacturers see the possibilities and are also beginning to enter into the stationary storage market. BMW recently signed a contract to incorporate 500 i3 battery packs into the UK’s national electrical grid. Renault is developing a home energy storage product based on its Zoe batteries. Toyota and Nissan have both announced plans to offer energy storage, and Audi is one of several brands that are exploring the possibilities with pilot projects.

Above: Nissan hired actress Margot Robbie to showcase its home energy “xStorage” product along with its all-electric Nissan Leaf (Youtube: Motorward)

It’s a natural move for the automakers, who are steadily securing supplies of batteries for the EVs they’ll soon be building in volume. Volkswagen recently announced plans to invest $48 billion on battery tech over the next few years. If companies are going to be making large amounts of batteries, it simply makes sense to explore other markets that require storage.

Of course, Tesla has been doing just that for a few years now. The California trendsetter has scored some highly-publicized successes with utility-scale projects in Australia, and its Powerpacks are becoming popular for off-grid applications around the world.

But there’s more to this than just opening new markets for batteries. Tesla’s vehicles are seen as part of an ecosystem of products designed to function smoothly together. As Elon Musk explained to Fast Company, “This is the integrated future. You’ve got an electric car, a Powerwall, and a Solar Roof.” As Apple and Amazon have demonstrated, this can be an unbeatable strategy – if a customer is driving a Model S, and is impressed with the company, she’ll be that much more likely to buy a solar electric system (and why not a flamethrower, too?) from Tesla as well. The legacy automakers would be foolish to ignore the possibilities.

In dollar terms, those possibilities are staggering. Markets Insider predicts that the market for grid-connected battery storage will grow from $3.3 billion in 2016 to $14 billion by 2021, and probably well over $100 billion by 2030 – a compound annual growth rate of around 34 percent.

It’s not even necessary to produce batteries specifically for the stationary storage market. As EV batteries age, they gradually lose capacity, and drivers, who crave maximum range, will want to replace them. However, once a superannuated battery is no longer suitable for use in a vehicle, it can still be quite useful in a stationary storage application. Several automakers are investigating the possibilities of “second-life” EV batteries.

===

Note: Article originally published on evannex.com by Charles Morris; Source: SingularityHub

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According to Reuters, the information comes from three internal company documents and statements from seven present and former Tesla employees. The documents accessed by the publication state that the latest cuts to the division come from a part of the company that was once SolarCity. Tesla’s partnership with Home Depot to push sales of its solar solutions and Powerwall 2 home batteries is set to be discontinued as well. According to Home Depot spokesman Stephen Holmes, its partnership with Tesla would last through the end of 2018, after which it would continue a partnership with competitor Sunrun in a number of its stores. 

An internal company list reviewed by Reuters added that after the closures of the solar facilities, about 60 solar installation sites would remain open. The facilities that will be closed are reportedly located in California, Texas, Maryland, New York, New Jersey, Connecticut, New Hampshire, Delaware, and Arizona. Solar customer service staff at call centers in Utah and Nevada have also been reportedly laid off by the company.

A Tesla Powerwall 2 displayed in a Home Depot outlet. [Credit: Xixu/Twitter]

With the Home Depot partnership terminated, Tesla will now push its solar solutions through its own stores. Personnel from the facilities that are set to be closed are being transferred to other sites as well. In a statement to Reuters, Tesla noted that the company still expects to grow its solar and battery business over time.

“We continue to expect that Tesla’s solar and battery business will be the same size as automotive over the long term. Tesla stores have some of the highest foot traffic of any retail space in the country,” the company said.

While stopping its partnership with Home Depot might come off as alarming, GTM Research analyst Austin Perea noted that the deal might have been discontinued as a means to reduce unnecessary expenses. While the Home Depot partnership accounted for a significant number of solar and energy sales for Tesla, third-party retail partnerships are among the most expensive means of generating sales in the solar industry. According to Perea, the cost of winning a customer through Home Depot could cost up to $7,000 per system, roughly 45% more compared to the national average of $4,000 per installation.

Tesla’s energy business is steadily growing, however. Last month, CTO JB Straubel noted in a statement to Fast Company that Tesla had installed 1 GWh worth of energy storage to date, an impressive figure that was reiterated by Elon Musk during the company’s 2018 Annual Shareholder Meeting. During the investors’ event, Musk noted that Tesla would be doing another 1 GWh project less than a year from now, with more growth set to happen within the next few years. As could be seen in Tesla’s 10-Q form for Q1 2018, the company’s energy and storage revenue increased 92% in the three months ended March 31, 2008 year-on-year, primarily due to the earnings of the 129 MWh Powerpack farm in South Australia, which generated $72.5 million on its own.

Tesla continues to deploy its energy solutions to several projects across the globe. Currently, Tesla is involved in roughly 11,000 projects in Puerto Rico, where it continues to help communities damaged by Hurricane Maria get back on their feet. Tesla is also starting on the beginnings of a virtual power plant in South Australia involving 50,000 residential homes fitted with Powerwall 2 home batteries and residential solar. 

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In an announcement on Wednesday, Puerto Rico’s Electric Power Authority stated that the whole island is without electricity and that it would likely take around 24 to 36 hrs before power is restored. Puerto Rico power officials further noted that they are prioritizing the restoration of electricity in key locations first, such as hospitals and banking centers. The recent islandwide blackout came not long after another power outage affected around 840,000 residents last week.

Responding to the news on Twitter, Musk stated that Tesla batteries have gone live and are delivering power to 662 locations in Puerto Rico. According to Musk, the Tesla team is working around the clock to activate “several hundred” more.

Tesla batteries are currently live & delivering power at 662 locations in Puerto Rico. Team is working 24/7 to activate several hundred more. https://t.co/OMu8qKJvLy

— Elon Musk (@elonmusk) April 18, 2018

Not long after the billionaire entrepreneur’s Twitter announcement, Tesla’s official Twitter account shared photos of the company’s solar installations in the island as well, stating that there are currently over 1,000 Tesla batteries that have been activated in 662 locations so far. Echoing Musk’s statement, the electric car and energy company noted that more projects are underway.

Puerto Rico has been dealing with a power crisis since being hit by Hurricane Maria almost 7 months ago. When the Category 4 hurricane made landfall, it devastated the country’s entire power grid, leaving its roughly 3.5 million residents without power. Amid the relief efforts to aid the country, Tesla began shipping some of its Powerwall 2 residential battery storage units and solar panels to help restore electricity to Puerto Rico’s residents. Musk also made a personal donation to the country worth $250,000.

Musk noted that its batteries could be used by the country to help support its damaged grid, considering that it had already done similar projects for “many smaller islands around the world” in the past.  The Tesla CEO further stated that while there is no scalability limit when it comes to battery storage and solar solutions, the decision to pursue such a project would ultimately lie in the hands of the Puerto Rico government.

Puerto Rico Governor Ricardo Rossello expressed interest in Musk’s Twitter statement, suggesting that the island nation could become Tesla’s flagship energy project. Since then, Tesla has been hard at work installing its batteries and its photovoltaic systems to locations across the country; and if Musk’s recent announcement is any indication, more installations will likely happen soon.

As we noted in a previous report, if Tesla aims to supply 40% of the island’s energy through solar and battery solutions, the cost of the project would be substantial. Considering the rates of Tesla’s solar panels and battery packs, the cost of materials would roughly come at $9.58 billion. Factoring in an estimated 7% interest rate and Puerto Rico’s rather poor credit rating and high debt, the project could ultimately cost over $21 billion over 20 years.

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Tesla’s earnings from its big battery installation currently follow the standards set by the Australian Energy Market Operator (AEMO), which breaks down a power provider’s response time into 6 seconds, 1 minute, and 5 minutes for energy to be fed into the grid. Tesla’s SA Powerpack farm near Jamestown, however, has been providing backup energy in as quick as 200 milliseconds. Thus, any amount of energy sent from Tesla’s battery into the grid that lasts between 200 milliseconds and 6 seconds is just too quick to be registered according to AEMO’s current specifications.

In a statement to The Sydney Morning Herald, Tesla stated that around 30%-40% of services provided by the SA big battery ended up unpaid due to the system’s quick response time. Tesla further asserted that AEMO’s standards are currently designed for fossil fuel-based backup systems, which respond to energy grid instabilities far slower than the industry-grade Powerpack batteries.

“Tesla estimates that the Hornsdale Power Reserve battery has delivered 30 to 40% of its services to frequency markets without being paid due to existing AEMO technical specifications being written based on fossil fuel generation assets.

“Current standards compensate batteries for their capacity based on fossil generator response rates, despite the ability to provide a faster ramp time. This makes it difficult for the full value of fast-responding technologies to be recognized in the current contingency FCAS markets.”

Over the past few months, Tesla’s SA Powerpack farm, which currently stands as the largest lithium-ion battery installation in the world, has been pivotal in stabilizing the energy grid in South Australia. Last December alone, Tesla’s 100 MW/129MWh installation accomplished a huge feat, keeping the region’s energy stable amidst the unexpected failure of the coal-powered Loy Yang A power plant in Victoria. During that time, Tesla’s Powerpacks backed up the grid within 0.14 seconds after the unexpected breakdown of the coal-powered plant. The system also supported the grid hundreds of times over the course of the month.

The performance of Tesla’s big battery in South Australia was recently examined by energy expert Hugh Saddler, who studied the charge and discharge patterns of the installation. Over the course of his tests, Saddler noted that the Powerpack farm exhibited great efficiency, with 30% of the battery’s 100MW capacity being allocated to the system’s daily charge and discharge cycles, and the rest being allotted to keep the energy grid’s frequency at a steady 50 Hz and 240 volts.

Tesla’s energy initiatives in South Australia recently met a series of roadblocks, however, with South Australia resource minister Matt Canavan mocking the SA Powerpack farm by calling it the “Kardashian” of the energy industry and alleging that the installation is simply “famous for being famous.” Newly-elected South Australia premier Steven Marshall has also gone on the offensive against the Elon Musk-led company’s projects, stating that his government would not be supporting Tesla’s proposal of building a 250 MW/650 MWh virtual power plant from 50,000 low-income residential units and home Powerwall 2 systems.

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To complete the project, Tesla partnered with local renewable energy company Solar Philippines. According to a report from Energy Storage News, Solar Philippines believes that the 2MW/2MWh will be enough to provide reliable power to the town’s residents 24 hours a day, at 50% less than the usual electricity costs. A 2MW diesel generator is on standby as well, ready to provide extra power when the need arises.

Solar Philippines founder Leandro Leviste believes that the Powerpack installation in Paluan would be the first of many renewable solutions in the country. The Solar Phils. executive further noted that “there is no reason” why other towns in the country would not follow suit, considering the cost benefits offered by solar-battery installations.

Tesla Powerpacks were installed on a small town in the Philippines. The term ‘brownouts’ seen in the banner is a local slang for power outages. [Credit: Solar Phils]

The benefits of the solar-battery system are notable. Thanks to the 2MW/2MWh micro-grid, the town’s residents were able to experience a Christmas absent of power outages for the first time. Schools in the area have also begun using computers. An ice plant, which would support the local fishermen, is also being planned. The town’s residents aired their gratitude to Solar Phils. and Tesla in a recent photograph, proudly declaring that there are no more power outages in the area since the batteries and solar arrays were installed.

The tiny town of Paluan, located just below the largest island in the Philippines, is home to around 16,000 people, according to a census conducted in 2015. The town is infamous for its struggles with electricity, with power outages becoming a part of its residents’ daily routines. The town first got electricity back in 1978, though the region’s grid was only able to provide power for 4 hours a day. This was improved in 2014, when the Philippines’ National Power Corporation was able to provide the town with electricity for 16 hours on a daily basis. Despite this improvement, however, power outages were still common, with some lasting for several days.

Tesla’s Powerpack systems have become game changers for areas with unstable electricity. Over the past few months, Tesla’s 100 MW/129 MWh big battery near Jamestown in South Australia had helped the region’s beleaguered energy grid hundreds of times, at one point even providing backup energy after a coal-powered plant unexpectedly experienced a power loss in December. Tesla had also announced other, more ambitious projects for the country, such as a 250 MW/650 MWh virtual power plant involving 50,000 residential units and Tesla Powerwall 2 batteries.

As we noted in a recent report, however, Tesla’s initiatives in South Australia are currently hitting roadblocks from the government, with newly-elected premier Steven Marshall stating that he would not support the company’s virtual power plant initiative. LNP senator and Minister for Resources Matt Canavan also dismissed Tesla’s efforts, calling the Powerpack farm near Jamestown the “Kim Kardashian” of energy.

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