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Tesla partners up to expand Virtual Power Plant program in Texas

More Tesla Powerwall customers are coming to the distributed battery program in South-Central Texas.

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Credit: Tesla

Tesla is a part of a new energy partnership in Texas set to help expand the company’s Virtual Power Plant (VPP) program in the state, as announced by one energy provider this week.

In a press release on Monday, the Guadalupe Valley Electric Cooperative (GVEC) announced a partnership with Tesla and the Electric Reliability Council of Texas (ERCOT) to participate in a utility-scale VPP pilot program. Dubbed the Aggregated Distributed Energy Resource (ADER), the pilot will utilize Tesla’s Powerwall home battery systems to create a distributed “battery” across owners, in order to help stabilize the grid and provide backup power in times of peak demand.

GVEC says the early ADER program has already registered around 17 MW of generation from Tesla’s Powerwall customers, and the utility provider’s Board President Gary Birdwell highlights how important the subject of energy storage is in today’s climate.

“Consumer generated energy is quickly becoming an important resource for the Texas wholesale electricity market,” Birdwell said in a statement. “Cooperation between GVEC and Tesla, two prominent market participants, uniting to utilize their strengths for the common goal of building stability and resiliency of the grid is a strategic move.”

Through Tesla’s VPP programs, such as this one, Powerwall owners can essentially sell generated and stored electricity back to the grid when demand is high or the grid is facing outages. GVEC does this through what it calls the Peak-Time Payback (PTP) program, offering mutual support for customers and ERCOT grid operators.

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The group describes itself as a cooperative group providing electricity and electrician services, solar and energy storage, internet, air conditioning and heating to over 130,000 customers in South-Central Texas across Cuero, Gonzales, La Vernia, Schertz and Seguin. GVEC says it officially became a certified Tesla battery installer in the region in 2019, adding that Powerwall installations have continued to increase in the years since.

“Tesla has been a major player in the ADER pilot program since its inception. They are a highly visible company with the capabilities and expertise to meet the robust participation requirements,” says Darren Schauer, GVEC General Manager and CEO. “As an additional benefit, GVEC has the ability to offer ancillary services directly onto the market. This means GVEC Powerwall members can now support the needs of the Texas grid while also creating a new revenue stream to reinforce the long-term financial strength of their member-owned cooperative.”

READ MORE ON TESLA’S VIRTUAL POWER PLANTS: Tesla invites LADWP customers to join its Virtual Power Plant

As of Q3 2024, Tesla said it had over 100,000 Powerwalls participating in its VPP programs globally, and the company also started rolling out its next-gen Powerwall 3 in markets around the world throughout last year. Along with Texas, Tesla currently has U.S. VPP programs being run or piloted in Northern and Southern California, Massachusetts, Puerto Rico and elsewhere, not to mention those in other multiple countries.

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In November, Tesla’s team at Gigafactory Nevada also celebrated building over 1,000 Powerwall units in a single day. Months earlier in August, Giga Nevada crews reached a milestone of building 500 Powerwalls in one shift, as the company continues to ramp up production of the home-scale batteries.

Meanwhile, Tesla Energy’s portfolio is also backed by the Megapack grid-scale batteries, which have also been deployed worldwide. The company currently produces Megapacks at a factory in Lathrop, California, where it has been ramping production since launching in 2022, as well as a new facility in Shanghai, China, which went online last month. Tesla has also alluded to plans for a third “Megafactory,” which is reportedly being built in Texas.

Tesla ad shows EV and Powerwall customer saved 94% on electricity bill

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Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Tesla stuns with another FSD approval in Europe, its second in two days

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Tesla has stunned by gaining yet another approval for its Full Self-Driving suite in Europe, its second in two days and its fifth overall.

Belgium will be the latest country to allow Tesla owners to utilize FSD on public roads in Europe, joining a quickly growing list that started with the Netherlands, Lithuania, and Estonia.

On Tuesday, Denmark announced its approval of the FSD suite, which has now been followed by Belgium just one day later.

The country’s Minister of Mobility, Annick De Ridder, announced the approval on her X account, stating that she had just signed the approval of Tesla FSD. It now goes to the country’s homologation department for the last step of the approval process.

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The Belgian approval is one of mighty importance because it truly shows how quickly countries in Europe could greenlight the FSD suite consecutively. Approvals are already coming in relatively quickly, which is a great sign.

Perhaps the next big development that could come from FSD approvals in Europe is an approval from a country like England, Italy, France, Spain, or Germany. It would be something to see how FSD would perform in a major European metro, such as London, Barcelona, Madrid, Paris, Rome, or Berlin.

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Full Self-Driving does an excellent job of roaming around major U.S. cities like New York and Los Angeles, but other high-profile international cities of significance would truly mark a line in the sand for Tesla, which can simply enable any vehicle in its customer-owned fleet to run FSD with the correct approvals.

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SpaceX’s Elon Musk relieves worries about orbital data centers

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Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)
Rendering of Elon Musk overlooking a Starship fleet (Credit: Grok)

SpaceX CEO Elon Musk recently confronted worries about orbital data centers and launching satellites in mass quantities in space, as some voiced concerns about crowding.

Musk’s SpaceX plans to combat the issue of needing data centers by launching them into space instead of taking up valuable real estate on Earth. It has been a major point of SpaceX’s future, including its looming IPO, which could be the largest ever.

In a recent interview filmed at SpaceX’s Starlink terminal factory in Bastrop, Texas, Elon Musk directly addressed concerns that deploying large numbers of AI satellites for orbital data centers could crowd Earth’s orbit. His message was straightforward and reassuring: space is vast beyond human intuition.

“Space is really big,” Musk said. “It’s not like space is gonna get crowded. Space is enormous. If you actually look at it relative to the Earth, the satellites are so tiny you can’t even see them.” He emphasized that even zooming in makes a satellite appear large, but from a planetary perspective, they are minuscule specks.

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Musk pointed to SpaceX’s real-world experience operating roughly 10,000 Starlink satellites as evidence that large constellations can be managed safely. “We’ve got a pretty good idea of how to operate just really large constellations and do it safely,” he noted. SpaceX remains the only operator with meaningful experience at this scale, giving the company unique insight into tight orbital packing without compromising safety

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The discussion highlighted SpaceX’s plans for “AI1” satellites—essentially orbiting racks of AI compute powered by massive solar arrays and cooled via radiative panels in space’s vacuum.

These satellites leverage proven Starlink V3 technology, making them simpler to design than communications satellites. A first-generation unit targets around 150 kW peak power, with a 70-meter wingspan for solar panels and radiators. Laser links will connect them to each other and the Starlink network, delivering low-latency access (on the order of a few milliseconds from low-Earth orbit).

FCC accepts SpaceX filing for 1 million orbital data center plan

Musk framed orbital data centers as a practical solution to Earth’s constraints on AI growth. Ground-based facilities face power shortages, water demands for cooling, and grid limitations. In space, constant sunlight (no day-night cycle), vacuum radiative cooling, and abundant solar energy offer clear advantages.

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Production will ramp up at an expanded “Gigasat” factory in Bastrop, with solar manufacturing already underway and full AI satellite output expected at reasonable volume by the end of 2027. Starship’s rapid, high-volume launch capability, aiming for multiple flights per hour, will make massive deployment feasible.

Critics sometimes raise risks like space debris or Kessler syndrome, but Musk’s response underscores scale: even a million satellites would represent an imperceptible fraction of available orbital volume when viewed against Earth’s size. SpaceX’s automated collision avoidance and deorbiting designs for Starlink further mitigate concerns.

This vision ties into broader ambitions. Musk sees orbital AI compute as a step toward harnessing more of the Sun’s energy, advancing humanity on the Kardashev scale from a Type 0 civilization toward Type 1 and eventually Type 2. By moving power-hungry data centers off-planet, SpaceX aims to unlock orders-of-magnitude more compute while preserving Earth’s resources.

Musk’s comments should ease public anxiety. With proven operational expertise, incremental engineering, and the immensity of space itself, orbital data centers represent not overcrowding, but smart expansion into the final frontier.

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Investor's Corner

Tesla Full Self-Driving hits Level 4? One analyst says yes

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Credit: Tesla

Tesla Full Self-Driving (Supervised) is currently listed as a Level 2 suite in terms of its passenger cars. As its Robotaxi platform continues to move quickly, it has been recognized as a Level 4 ride-sharing program by the State of Texas, as Tesla recently self-certified itself.

However, a Wall Street analyst is arguing that Tesla (NASDAQ: TSLA) has effectively achieved Level 4 autonomy in most conditions in all of its vehicles, drawing on personal experience and data released by the company.

Alex Potter of Piper Sandler said in a note to investors on Wednesday that “Tesla has solved the self-driving puzzle,” pointing to decisions to offer insurance discounts for FSD-enabled policies as a signal of confidence, which is backed up by stellar safety records compared to human driving.

Investing.com initially reported on Potter’s new note.

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Additionally, Potter looks at the recent start of Cybercab production at Giga Texas as a potential indication that Tesla is ready to offer some level of unsupervised driving at least in the near future. The Cybercab has no steering wheel or pedals, completely eliminating the ability for human input.

He also sees Tesla’s allocation of “several hundred million USD (if not $1B+)” as confidence internally, seeing as it would be tough to set aside that amount of capital toward a project that the company does not see as relatively near-term.

Forward thinking, especially as Cybercab has no human controls, it would make sense that Tesla is at least close to self-driving. How close is another question.

Tesla has routinely teased that unsupervised FSD is close, but there are still a lot of things it feels as if the company has to roll out some more capability, including unsupervised parking features, known as “Banish,” better operation with regional self-driving performance, and other improvements.

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That is not to say that Tesla FSD is super impressive already. It has already completed coast-to-coast drives across the United States and Canada, it routinely takes the stress out of driving for most people, and it has proven through Tesla Safety Reports that it is safer and involved in accidents less frequently than humans.

Even Potter believes it is capable, as he used it to go from Missoula, Montana, to Minneapolis, Minnesota, back in April.

“There’s no substitute for personal experience,” he wrote.

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