

Energy
Tesla’s success in Australia opens up opportunity for 2nd big battery project in country
Following Tesla’s successful deployment of the world’s largest battery in South Australia, carrying out CEO Elon Musk’s 100-day target to install a grid-scale Powerpack battery unit, or the system would be free, another state in the land down under has lined up as Tesla Energy’s next customer. As noted in a recent report from the Sydney Morning Herald, Victoria has joined South Australia in its push towards a large-scale renewable energy system.
Tesla’s South Australia Powerpack facility currently stands as the largest lithium-ion battery of its kind on the planet. Powered by clean energy from Neoen’s Hornsdale Wind Farm near Jamestown, the mammoth 100 MW/129 MWh battery is capable of powering up to 30,000 homes during blackout periods.
According to the Australian Energy Market Operator (AEMO), the Powerpack system in SA has already proven itself multiple times since it was completed, providing ample backup power and other grid services hundreds of times in December 2017 alone. More notably, Tesla’s energy system recently supplied emergency power to one of Australia’s biggest coal-fired power stations after it experienced an unexpected loss of power on December 14.
The notable success of Tesla’s South Australia facility seems to be a significant driving force for the state of Victoria, which ultimately decided to pursue a contract with the California-based electric carmaker and energy firm to install its very own Powerpack system. Victoria’s batteries would be installed in Bulgana, though at 20 MW, the system would only be 1/5th the size of South Australia’s facility.
Franck Woitiez, managing director of Neoen, a French energy firm and Tesla’s partner in the SA Powerpack system, is optimistic about the potential of Victoria’s batteries. According to the Neoen executive, the Bulgana Powerpack system might even be enough to provide adequate support for the area’s power grids in the near future.
“The performance of the South Australian battery is outstanding. The Bulgana battery is primarily going to provide energy to Nectar Farms and may support the grid in the future,” he said, according to a SMH report.

Tesla’s 100 MW/129 MWh Powerpack system dubbed as the ‘World’s largest battery’ in Jamestown, Australia
Energy officials in Victoria are also equally excited about Tesla’s upcoming Powerpack system. According to energy minister Lily D’Ambrosio, the Elon Musk-led energy company’s forthcoming project would play a vital role in Victoria’s pursuit of renewable energy.
“(The agreement is) a major step forward for communities, businesses and the renewable energy industry. This project will reduce greenhouse gas emissions while helping meet Victoria’s renewable energy generation targets,” the energy minister said.
John Grimes, head of the Smart Energy Council, further stated that the clean energy initiatives of South Australia, and now Victoria, are but the beginning. Grimes also said that 2018 might very well be a pivotal year for renewable energy.
“What we’re seeing with the South Australian battery, what we’re seeing in Victoria, is really the tip of the iceberg for a pipeline of projects that’s coming along. This is a breakout year for energy storage.”
Tesla’s South Australian Powerpack system initially captured the public’s eye after Elon Musk and fellow billionaire Mike Cannon-Brookes, who co-founded Atlassian, conducted a friendly wager on Twitter. During the two billionaires’ Twitter exchange, Musk raised the stakes of the bet by declaring that Tesla would build a working Powerpack system for SA in 100 days or it would be free. Not long after, South Australia became home to Tesla’s largest lithium-ion battery system in the world.
Energy
Tesla recalls Powerwall 2 units in Australia

Tesla will recall Powerwall 2 units in Australia after a handful of property owners reported fires that caused “minor property damage.” The fires were attributed to cells used by Tesla in the Powerwall 2.
Tesla Powerwall is a battery storage unit that retains energy from solar panels and is used by homeowners and businesses to maintain power in the event of an outage. It also helps alleviate the need to rely on the grid, which can help stabilize power locally.
Powerwall owners can also enroll in the Virtual Power Plant (VPP) program, which allows them to sell energy back to the grid, helping to reduce energy bills. Tesla revealed last year that over 100,000 Powerwalls were participating in the program.
Tesla announces 100k Powerwalls are participating in Virtual Power Plants
The Australia Competition and Consumer Commission said in a filing that it received several reports from owners of fires that led to minor damage. The Australian government agency did not disclose the number of units impacted by the recall.
The issue is related to the cells, which Tesla sources from a third-party company.
Anyone whose Powerwall 2 unit is impacted by the recall will be notified through the Tesla app, the company said.
Energy
Tesla’s new Megablock system can power 400,000 homes in under a month
Tesla also unveiled the Megapack 3, the latest iteration of its flagship utility scale battery.

Tesla has unveiled the Megablock and Megapack 3, the latest additions to its industrial-scale battery storage solution lineup.
The products highlight Tesla Energy’s growing role in the company, as well as the division’s growing efforts to provide sustainable energy solutions for industrial-scale applications.
Megablock targets speed and scale
During the “Las Megas” event in Las Vegas, Tesla launched Megablock, a pre-engineered medium-voltage block designed to integrate Megapack 3 units in a plug-and-play system. Capable of 20 MWh AC with a 25-year life cycle and more than 10,000 cycles, the Megablock could achieve 91% round-trip efficiency at medium voltage, inclusive of auxiliary loads.
Tesla emphasized that Megablock can be installed 23% faster with up to 40% lower construction costs. The platform eliminates above-ground cabling through a new flexible busbar assembly and delivers site-level density of 248 MWh per acre. With Megablock, Tesla is also aiming to commission 1 GWh in just 20 business days, or enough to power 400,000 homes in less than a month.
“With Megablock, we are targeting to commission 1 GWh in 20 business days, which is the equivalent of bringing power to 400,000 homes in less than a month. It’s crazy. How are we planning to do that? Like most things at Tesla, we are ruthlessly attacking every opportunity to save our customers time, simplify the process, remove steps, (and) automate as much as we can,” the company said.
Megapack 3 is all about simplicity
The Megapack 3 is Tesla’s next-generation utility battery, designed with a simplified architecture that cuts 78% of connections compared to the previous version. Its thermal bay is drastically simplified, and it uses a Model Y heat pump on steroids. The battery weighs about 86,000 pounds and holds 5 MWh of usable AC energy. Tesla engineers incorporated a larger battery module and a new 2.8-liter LFP cell co-developed with the company’s cell team.
The Megapack 3 is designed for serviceability, and it features easier front access and no roof penetrations. About 75% of Megapack 3’s total mass is battery cells, with individual modules weighing as much as a Cybertruck. It’s also tough, with an ambient operating temperature range from -40C to 60C. This should allow the Megapack 3 to operate optimally from the coldest to the hottest regions on the planet.
Production is set to begin at Tesla’s Houston Megafactory in late 2026, with planned capacity of 50 GWh per year. Additional supply will come from Tesla’s 7 GWh LFP facility in Nevada, which is expected to open in 2025, as well as with third-party partners.
Energy
Tesla Energy is the world’s top global battery storage system provider again
Tesla Energy captured 15% of the battery storage segment’s global market share in 2024.

Tesla Energy held its top position in the global battery energy storage system (BESS) integrator market for the second consecutive year, capturing 15% of global market share in 2024, as per Wood Mackenzie’s latest rankings.
Tesla Energy’s lead, however, is shrinking, as Chinese competitors like Sungrow are steadily increasing their global footprint, particularly in European markets.
Tesla Energy dominates in North America, but its lead is narrowing globally
Tesla Energy retained its leadership in the North American market with a commanding 39% share in 2024. Sungrow, though still ranked second in the region, saw its share drop from 17% to 10%. Powin took third place, even if the company itself filed for bankruptcy earlier this year, as noted in a Solar Power World report.
On the global stage, Tesla Energy’s lead over Sungrow shrank from four points in 2023 to just one in 2024, indicating intensifying competition. Chinese firm CRRC came in third worldwide with an 8% share.
Wood Mackenzie ranked vendors based on MWh shipments with recognized revenue in 2024. According to analyst Kevin Shang, “Competition among established BESS integrators remains incredibly intense. Seven of the top 10 vendors last year struggled to expand their market share, remaining either unchanged or declining.”

Chinese integrators surge in Europe, falter in U.S.
China’s influence on the BESS market continues to grow, with seven of the global top 10 BESS integrators now headquartered in the country. Chinese companies saw a 67% year-over-year increase in European market share, and four of the top 10 BESS vendors in Europe are now based in China. In contrast, Chinese companies’ market share in North America dropped more than 30%, from 23% to 16% amid Tesla Energy’s momentum and the Trump administration’s policies.
Wood Mackenzie noted that success in the global BESS space will hinge on companies’ ability to adapt to divergent regulations and geopolitical headwinds. “The global BESS integrator landscape is becoming increasingly complex, with regional trade policies and geopolitical tensions reshaping competitive dynamics,” Shang noted, pointing to Tesla’s maintained lead and the rapid ascent of Chinese rivals as signs of a shifting industry balance.
“While Tesla maintains its global leadership, the rapid rise of Chinese integrators in Europe and their dominance in emerging markets like the Middle East signals a fundamental shift in the industry. Success will increasingly depend on companies’ ability to navigate diverse regulatory environments, adapt to local market requirements, and maintain competitive cost structures across multiple regions,” the analyst added.
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