Energy
Tesla Energy takes part in CA’s record-breaking 2.2 GWh battery storage project
Tesla Energy is poised to participate in California’s initiative to build one of the world’s largest battery systems. After a historic 4-1 vote, California utility regulators approved a proposal put forward by Pacific Gas & Electric, which aimed to replace three natural gas-fired power plants in the state with utility-grade lithium-ion batteries.
When completed, the projects approved by the California Public Utilities Commission (CPUC) would be among the largest battery installations in the United States. Among these is a 300 MW lithium-ion battery from Dynegy, as well as a 182.5 MW Tesla battery system. Installations from Hummingbird Energy Storage (75 MW) and mNOC (10MW) allow the entire clean energy initiative to reach a total of 567 MW. Considering that all the battery systems have four-hour ratings, the total energy rating of the entire project is an impressive 2.27 GWh.
Among the most notable gas-powered plants that would be replaced by the battery installations is a facility in Moss Landing, CA, located around 15 miles north of Monterey. All the battery systems, particularly Tesla’s 182.5 MW installation and Dynegy’s 300 MW battery, will be located on the site of the outgoing gas-powered plant.
Apart from being impressive in its size, the recently approved battery projects will not only connect to the area’s substation and transmission infrastructure built for the Moss Landing Power Plant; the lithium-ion batteries will replace the entire range of services provided by the plant itself as well. Dynegy, who owns the gas-powered plant, noted back in February that it would likely retire the facility. The CPUC has stated that another plant in Gilroy would probably go offline in the near future as well.
While the benefits of industry-grade batteries are notable, PG&E’s proposal met a notable amount of opposition nonetheless, particularly from gas generator Calpine, the California Direct Access Customer Coalition, and the California Community Choice Association. According to the project’s skeptics, the investment in the lithium-ion battery systems would not be a good use of taxpayer funds. Despite the opposition, though, the large-scale energy storage project was approved nonetheless.
With the project’s approval from the CPUC, California has managed to take a step forward in its efforts to decarbonize its electric system by shifting from natural gas to greener solutions. In a statement to GreenTechMedia, Matt Vespa, staff attorney at Earthjustice, stated that the upcoming battery installations would give several benefits to the state’s residents.
“Not only will this help California integrate solar and reduce the need to ramp up polluting gas plants in the late afternoon, but it will also provide local reliability needs in an area that is currently highly reliant on gas-fired generation. We are getting multiple benefits, pushing gas off the system, and moving a step closer to a decarbonized grid,” he said.
While Tesla’s Energy business usually takes a back seat to its electric car business, the company’s battery storage division continues to grow rapidly. Billionaire investor Ron Baron, for one, stated that he believes Tesla’s energy business could be worth $500 billion on its own by 2030. In a way, part of this projected growth is attributed to the declining price of batteries and the performance of projects such as the South Australia Powerpack farm, which has all but triggered a clean energy movement in the region. In a statement earlier this year, Tesla CTO JB Straubel remarked that battery technology has progressed to a point where it now has the potential to replace inefficient and dirty power plants.
“I think what we’ll see is we won’t build many new peaker plants, if any. Already what we’re seeing happening is the number of new ones being commissioned is drastically lower, and batteries are already outcompeting natural gas peaker plants,” Straubel said.
The emergence of Tesla Energy at this point in time could bode well for the company, particularly since battery storage is expected to grow in the future. A study from GTM Research, for one, estimates that sales of energy storage for both residential and utility markets in America would probably hit $541 million this year, before passing $1 billion in 2019, and eventually reaching $4.6 billion in 2023. If Tesla Energy can ramp its operations in time, and if its batteries prove themselves in the field, the electric car maker could very well position itself strategically in what could, in more ways than one, be a clean energy gold rush.
Energy
Tesla Energy gains UK license to sell electricity to homes and businesses
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
Tesla Energy has received a license to supply electricity in the United Kingdom, opening the door for the company to serve homes and businesses in the country.
The license was granted to Tesla Energy Ventures Ltd. by UK energy regulator Ofgem after a seven-month review process.
According to Ofgem, the license took effect at 6 p.m. local time on Wednesday and applies to Great Britain.
The approval allows Tesla’s energy business to sell electricity directly to customers in the region, as noted in a Bloomberg News report.
Tesla has already expanded similar services in the United States. In Texas, the company offers electricity plans that allow Tesla owners to charge their vehicles at a lower cost while also feeding excess electricity back into the grid.
Tesla already has a sizable presence in the UK market. According to price comparison website U-switch, there are more than 250,000 Tesla electric vehicles in the country and thousands of Tesla home energy storage systems.
Ofgem also noted that Tesla Motors Ltd., a separate entity incorporated in England and Wales, received an electricity generation license in June 2020.
The new UK license arrives as Tesla continues expanding its global energy business.
Last year, Tesla Energy retained the top position in the global battery energy storage system (BESS) integrator market for the second consecutive year. According to Wood Mackenzie’s latest rankings, Tesla held about 15% of global market share in 2024.
The company also maintained a dominant position in North America, where it captured roughly 39% market share in the region.
At the same time, competition in the energy storage sector is increasing. Chinese companies such as Sungrow have been expanding their presence globally, particularly in Europe.
Energy
Tesla Powerwall distribution expands in Australia
Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.
Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.
Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.
“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.
“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”
Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.
“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”
Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
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