American clean energy company Tesla has secured a multi-billion Megapack contract for Intersect Power’s solar + storage projects through 2030, demonstrating the battery’s dominance in the global large-scale energy storage industry.
Tesla inks deal with Intersect Power for massive battery storage project
According to the press release, Tesla will provide more than 15 GWh of Megapack to California-based clean energy giant Intersect Power.
The Tesla Megapacks will power Intersect Power’s large battery energy storage system (BESS) projects through the end of the decade.
Depending on pricing, the Megapacks are expected to be worth more than $3 billion.
“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.”
Sheldon Kimber, Intersect Power CEO
Order surpasses Tesla’s Q2 deployment
Megapack has been one of Tesla’s fastest-growing products, enabling the company to install a record-breaking 9.4 GWh capacity of energy storage last quarter.
Remarkably, this Q2 2024 result indicates an astounding 132% growth from Tesla’s previous record.
This considered, the 15.3 GWh Megapack contract will exceed the company’s highest quarterly record to date. In effect, Tesla’s energy business will undoubtedly reach new highs in the coming years.
For context, Intersect Power already has 2.4 GWh of Tesla Megapacks “in operation or under construction. Therefore, the new deal is indeed a major step for the company.
“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.”
Mike Snyder, Senior Director of Tesla Energy
Timeline
Intersect Power expects Tesla to install most of the 15 GWh capacity within the next two years.
Therefore, a huge portion of the Musk-led company’s current energy storage capacity of 40 GWh annually will go to Intersect Power.
Tesla Energy will install almost 10 GWh of Megapack at the site by the end of 2027.
It will gradually deploy the remaining capacity to fulfill the agreed 15.3 GWh of large-scale energy storage by 2030.
This latest agreement will make Intersect Power one of the largest operators of Megapacks across the world.
Tesla’s energy storage unit proves to be its current strongest performer, offsetting recent slowdowns in electric vehicles and solar panels. Such contracts continue to demonstrate that Tesla Energy is growing at a monumental rate.
