Tesla Megapack batteries are powering Britain’s largest energy storage project
September 7, 2021
.The construction of the United Kingdom’s largest energy storage project has begun, and it is expected to be a true difference-maker when the supply of renewables like solar or wind is low. Located in southeast England, the facility would provide 99 MW of power that will be stored in Tesla Megapack batteries.
Megapacks are specifically designed for grid use. With a maximum energy capacity of 3 MWh per unit and built-in bi-directional inverters, thermal management system, AC main breaker, and controls, Megapacks are ideal for large-scale projects. This effectively made the giant batteries a perfect fit for Britain’s energy storage needs.
As noted in a Bloomberg report, the UK is currently in dire need of grid-scale energy storage solutions, especially following incidents such as the price spikes observed earlier this week. On Monday, energy rates surged to a record high as wind output plunged, resulting in coal and gas facilities being utilized to help the grid — for a steep price. Grid-scale batteries would have been a more preferable option.
The Tesla Megapack installation in southeast England is not the first large-scale battery in the country. Just recently, the Contego energy storage site in West Sussex, England, went live, bringing some additional stability to the area’s grid. The 34 MW / 68 MWh Contego Battery Energy Storage System is also comprised of Tesla Megapack batteries.
The demand for Tesla’s energy storage products has remained strong, with Elon Musk noting in the company’s Q2 2021 earnings call that Megapack batteries are sold out through the end of 2022. Musk added that the same is true for the company’s residential battery storage product, the Powerwall 2. According to Musk, the nature of renewables means that batteries will be needed to create a stable grid.
“As all transitions to a sustainable energy production, solar and wind are intermittent and by their nature really need battery packs in order to provide a steady flow of electricity. And when you look at all the utilities in the world, this is a vast amount of batteries that are needed. That’s why in the long term, we really think sort of combined Tesla and suppliers need to produce at least 1,000 GWh a year, and maybe 2,000 GWh a year,” Musk said.
https://www.teslarati.com/tesla-batt...nergy-storage/
Tesla Megapack batteries sold out “through the end of 2022”
July 27, 2021
.
In the second-quarter earnings call, Tesla CEO Elon Musk shared that the Megapack is sold out up to the end of next year.
“We have a significant unmet demand in stationary storage. Megapack is basically sold out through the end of next year, I believe,” Elon Musk said while answering a question from New Street Research analyst Pierre Ferragu. He also stated that Tesla has a massive backlog in Powerwall demand.
A few weeks before the earnings call, Tesla updated the order page of the Megapack with new details and prices. The new order page reveals that the Megapack has a starting price of about $1.2 million per unit. The price varies depending on the state or U.S. territory. Potential Tesla customers can order up to 1,000 Megapacks, which would cost around $850 million or $278/kWh.
Ferragu also asked about Tesla’s sourcing strategy for the 4680 cells. He wondered if Tesla would ask other battery manufacturers to produce the 4680 cells with their own technology.
Musk stated that Tesla expects to see significant increases in supply from its existing suppliers. Earlier in the call, he shared that Tesla has contracts with battery suppliers to nearly double their cell supply for Tesla in 2022. Tesla is thinking of overshooting cell supply estimates for vehicles and routing excess batteries to Megapack and Powerwall production.
“But in terms of demand, I think there’s probably demand in excess of a million Powerwalls per year. And actually just vast amounts of the Megapack for utilities,” shared Musk.
“As all transitions to a sustainable energy production, solar and wind are intermittent and by their nature really need battery packs in order to provide a steady flow of electricity. And when you look at all the utilities in the world, this is a vast amount of batteries that are needed. That’s why in the long term we really think sort of combined Tesla and suppliers need to produce at least 1,000 gigawatt hours a year, and maybe 2,000 gigawatt hours a year,” he said.
https://www.teslarati.com/tesla-mega...t-end-of-2022/
Tesla’s shift to LFP cells for Megapack batteries heralds an energy storage revolution
May 4, 2021
.Canaccord Genuity analyst Jed Dorsheimer recently noted that Tesla has shifted to cobalt-free lithium iron phosphate (LFP) batteries for its flagship energy storage product, the Megapack. Such a change may seem minor, but the advantages presented by LFP batteries for the Megapack are notable, so much so that it may very well trigger an energy storage revolution of sorts.
“Tesla announced that Megapack will be using LFP cathode batteries, similar to the entry-level Made-in-China Model 3/Ys. This is significant, as Tesla ramps up their grid-scale energy storage product without drawing further on an already supply-constrained nickel-based battery production capacity used in 2170s,” the analyst wrote.
It took Tesla some time before it decided to use LFP batteries for its vehicles. LFP batteries are typically cheaper to produce, and the fact that they use no cobalt makes them one of the least controversial batteries on the market. However, LFP batteries also tend to be less energy-dense than the nickel-manganese-cobalt (NMC) cells used by Tesla in its flagship electric vehicles.
This is part of the reason why only selected vehicles like the Made-in-China Model 3 Standard Range Plus are equipped with LFP batteries. The car, after all, is optimized for cost and practicality, not performance. Nevertheless, this is a factor that is no issue for the Megapack, as energy storage units are not subjected to the same strains as those experienced by the batteries used in Tesla’s high-performance electric vehicles.
The Megapack is Tesla’s largest battery storage product to date. With a maximum energy capacity of 3 MWh per unit, the Megapack is one of the largest energy storage systems in the market. Its design is optimized for quick installations, and its shipping container-like form allows it to be scaled easily. Tesla notes that the Megapack requires 40% less space and 10x fewer parts than current systems on the market, as well.
With LFP batteries, the Megapack could see its production costs decrease, and considering Tesla’s tendency to pass its savings to its consumers through price adjustments, the grid-scale battery may eventually become more affordable. A more affordable Megapack is a formidable product, as it would make it far more reasonable than less sustainable alternatives. It could effectively accelerate the inevitable obsolescence of dirty peaker plants.
During the Q1 2021 earnings call, New Street Research analyst Pierre Ferragu inquired about Tesla’s expectations for its energy business. CEO Elon Musk noted that the target is for Tesla to achieve comparable margins between its EVs and energy products. He also mentioned that the company has a path to improve the cost per MWh of the Megapack.
“We’re aiming for comparable margins in storage as in vehicle. But it is important to bear in mind that vehicle is more mature than the storage. So — we’re already are at margins with the Powerwall. But some additional work is needed for the Megapack to achieve good margins. We have a clear runway for improving the cost per the megawatt-hour of the Megapack,” Musk said.
https://www.teslarati.com/tesla-lfp-...es-disruption/
Professional Member*
Originally Posted by Vinster
Professional Member* / ARP Committee
ESokoloff liked this post.
Reply
