Tesla has just secured a 100 megawatt (MW) Megapack contract worth roughly $100 million in New Zealand, according to local news outlet New Zealand Herald.
Tesla’s Megapack scores big in New Zealand
New Zealand power company Contact Energy has tapped American tech giant Tesla to develop a tremendous 100 MW battery storage system using its Megapack, a large-scale rechargeable li-ion battery stationary energy storage product.
The project will reportedly rise in Glenbrook, near Auckland, and the expected investment is up to NZD 163 million ($99.4 million).
“The battery will supply power to the grid in an instant, quickly getting electricity to where it is most needed in the country. It will also support the development of new renewables like wind and solar generation.”
Contact CEO Mike Fuge
Power generation capacity
According to the report, the battery energy storage system (BESS) project will leverage Tesla Megapack 2 XL battery units.
The system is expected to generate sufficient power to support 44,000 households for more than two hours during peak winter demand.
The Musk-led company will manage the commissioning and long-term maintenance services for the upcoming BESS in Glenbrook.
Potential expansion
Contact Energy’s deal with Tesla leaves the door open for potential expansion from the initial 100 MW capacity to 130 MW.
“With New Zealand Aluminium Smelters now confirmed to stay for the long term, providing improved market certainty, Contact is advancing its plans for investment in new intermittent renewable generation across New Zealand.”
Contact Energy
The partners aim to kick off the construction at the Glenbrook site “immediately.” Contact Energy will manage the overall BESS project.
They expect to officially launch the operation of the Glenbrook Megapack site as early as the first quarter of 2026.
Given that Tesla designed the Megapack for fast deployments, the partnership’s set timeframe seems more than possible despite the enormous size of the project.
Tesla’s Megapack has increasingly become a source of revenue and growth for the company. Tesla currently produces the Megapacks at the Lathrop Megafactory in California. Production will soon expand to China with the launch of its new Megafactory in Shanghai.
The project is expected to facilitate the integration of intermittent renewable energy sources like wind and solar by providing intra-day and intra-week energy balancing. This will help Contact Energy lessen its dependence on natural gas, paving the way for a more sustainable energy future in New Zealand.
