Tesla has secured an absurdly large contract to provide over 15 GWh of Megapack to California’s Intersect Power.
The Megapack has become the go-to, posterchild product for large-scale energy storage around the globe.
It’s by far Tesla’s fastest-growing product and enabled the company to deploy a record of 9.4 GWh of energy storage last quarter – more than twice the last record.
Now, Tesla has secured its biggest Megapack contract to date and it is absurdly large.
Today, Intersect Power announced that it secured a contract for Tesla to provide them 15.3 GWh of Megapacks through the next 5 years.
Intersect Power wrote 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.
As mentioned above, most of that capacity is expected to be deployed within the next 2 years, which means a significant part of Tesla’s capacity, which is currently ramping to 40 GWh per year, is going to go to Intersect.
Intersect currently only “2.2 GW of operating solar PV and 2.4 GWh of storage in operation or construction”. So this is a big step up for them, but the 10 GWh of projects planned for the next 2 years are reportedly already in the pipeline.
Mike Snyder, Senior Director of Tesla Energy, commented on the new partnership with Intersect:
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.
Sheldon Kimber, CEO of Intersect Power, added:
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.
The company confirmed that its first EMgapack deliveries under the new contract are expected next year.
Electrek’s Take
This is a massive contract that will take a large part of Tesla’s Megapack productrion capacity for the next few years.
We are talking about a contract worh between $2.5 and $3.5 billion depending on pricing.
Tesla’s energy storage business is truly the silverlinning of Tesla’s performance lately consideirng both EV deliveries and solar deployment are down.
FTC: We use income earning auto affiliate links. More.