Tesla Energy has been tapped to build what it claims to be the biggest lithium-ion battery storage project in the world.
Once completed, the Powerpacks will supply grid-scale power to Los Angeles, as Southern California looks to prevent electricity shortages after the biggest natural gas leak in the history of the United States.
Last year, Southern California Gas Co. detected a methane leak in one of its natural gas storage facilities in Aliso Canyon. The leak emitted 50,000 kilograms of the gas per hour, which is equivalent to a quarter of the daily methane emissions in California.
The leak has been reported to be permanently sealed in February, but not before it released 1.6 million pounds of methane into the atmosphere with greenhouse gas emissions said to be higher compared to the Deepwater Horizon oil spill of 2010.
Authorities have closed the Alisa Canyon facility, which was feeding the natural gas peaker plants in Los Angeles. However, with winter approaching, there will be a higher demand for natural gas for heat. With the Alisa Canyon facility not operational and the demands to place very high pressure on the energy infrastructure, there is a higher risk of rolling blackouts in Los Angeles.
The California Public Utilities Commission set out to acquire a utility-scale storage solution, which would be completed by Dec. 31. Batteries were the main target, as not like traditional generators of electricity, they do not need any gas or water pipelines, and they could be deployed quickly.
Tesla Energy, the energy solutions arm of Tesla Motors, was selected in a competitive process to provide a 20 MW/80 MWh Powerpack system that will be put up at the Southern California Edison Mira Loma substation.
Upon completion of the battery system, it will be able to hold enough energy when fully charged to provide power to over 2,500 household for a day or charge up to 1,000 Tesla Motors electric vehicles., according to the Tesla Motors blog post announcing the project.
The Powerpacks, which will be produced at the company's Gigafactory in Nevada, will store energy during off-peak hours and then deliver the stored energy during peak hours. This will reduce the need for the power generated by natural gas.
The record speed at which the Powerpacks will be produced shows the maturity of advanced technologies such as energy storage that can be tapped in emergency situations such as Los Angeles' power deficit, according to Bloomberg New Energy Finance analyst Yayoi Sekine.
"This isn't a Tesla-only story," said Sekine. "This is a broader energy win," as alternative energy solutions such as the one to be built by Tesla Energy are being given such opportunities.
