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Tesla Energy working to launch virtual power plant in Puerto Rico

(Credit: Tesla)

Tesla Energy is working to launch a virtual power plant (VPP) in Puerto Rico, Senior Vice President of Energy Engineering and Powertrain Drew Baglino said.

VPPs can be used for a variety of reasons, but affordability and grid stabilization through sustainable energy are the biggest advantages.

Tesla has been operating its VPP program since 2021, when it launched in California. It allowed owners to earn money by contributing stored energy through their Powerwalls to provide grid services. It helped utilize solar energy instead of other sources that may be polluting.

The VPP has been paying those who opted in roughly “$2 for every additional kWh your Powerwall delivers during an event,” the company says. The payouts have attracted more people to opt into the program, but Tesla is now evidently attempting to launch it in other areas.

Earlier today, Baglino was asked if Tesla had plans to launch a VPP in Puerto Rico where the population of Powerwalls is substantial. “We have over 350MW of Powerwalls in Puerto Rico that could help the grid shortage in Puerto Rico overnight,” Baglino said. “We are working with Luma Energy Puerto Rico to activate a VPP for all Powerwall customers this Summer.”

Puerto Rico is an ideal location for the program as it is a country that routinely faces power outages due to severe storms. It is commonly hammered by hurricanes during the Summer months, and the country’s clean energy advocates have fought to lean on renewable energy to help stabilize things, according to a report from Politico.

Baglino also said Tesla Electric customers in Texas will have a VPP launching there as well. It has already started testing this month and the first VPP credits will be paid out to customers next month.

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Tesla Energy working to launch virtual power plant in Puerto Rico
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