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Australian grid operator to add 250 kW Tesla Powerpack for “demand response” and blackout prevention

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Australian transmission operator Transgrid has announced that it will install a 250 kilowatt, 500 kilowatt hour Powerpack installation in New South Wales to better manageme fluctuating energy demand and prevent blackouts.

Transgrid operates the high voltage electricity transmission backbone for NSW and the ACT which connects the generators, distributors and large scale consumers of power. It is looking to energy storage as a means to smooth power spikes caused by renewables like solar which at the grid level, creates a spike in generation at midday that does not always correspond to usage. Unlike fossil fuel fired generation which can be throttled up or down as needed, solar systems generate electricity when the sun is shining and when it is gone, it’s gone.

Tesla commercial battery storage system will provide the local depot with energy savings by storing lower cost power during the day and returning it back to consumers during times of peak demand. Demand Response installations such as this eliminate the need for natural gas fired peaker plants which similarly stand at the ready to respond to increases in demand. Though these plants do not operate continuously, they generate a disproportionately high amount of pollution for the short periods they operate.  Storing low cost power when demand is low and metering it out during a spike has the potential to save operators and / or customers the incremental cost of these demand surcharges. Battery installations are also not exposed to commodity risk in the event of a spike in the price of natural gas or coal which makes the cost benefit analysis appear that much more attractive.

Storage at the facility level has similar benefits with a Powerpack installation having the ability to absorb excess solar power generated during the day and metering that power out over the evening and night. Keeping the power generated on site can mean the difference between a solar installation being cost effective or not, depending on the net metering policy of the utility.

Tesla won a contract with Transgrid to provide its Powerpacks to several sites last year of which this is the first. Transgrid is using the installation to explore the potential of grid scale batteries on its network before adding more.

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In March, Tesla CEO Elon Musk threw down the gauntlet with an Australian billionaire on Twitter, guaranteeing that Tesla could restore stability to Australia’s regional grids with several hundred megawatts of Powerpacks in just 100 days or Tesla would install the system for free. This pilot installation could be the crack in the floodgates, as Australia’s unstable grid and high electricity prices prove to be fertile ground for grid scale batteries.

Source: AFR (paywall)

I'm passionate about clean technology, sustainability and life. I've worked in manufacturing, IT, project management and environmental...and enjoy unpacking complex topics in layman's terms. TSLA investor. Find more of my words on my website or follow me on Twitter for all the latest. Tesla Referral link: http://ts.la/kyle623

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Energy

Tesla Megapacks powers the xAI Colossus supercomputer

Tesla Megapacks step in to stabilize xAI’s Colossus supercomputer, replacing natural gas turbines. Musk’s ventures keep intertwining.

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(Credit: Tesla Megapack)

Tesla Megapack batteries will power the xAI Colossus supercomputer in Memphis to ensure power stability. The collaboration between Tesla and xAI highlights the synergy among Elon Musk’s ventures.

The artificial intelligence startup has integrated Tesla Megapacks to manage outages and demand surges, bolstering the facility’s reliability. The Greater Memphis Chamber announced that Colossus, recently connected to a new 150-megawatt electric substation, is completing its first construction phase. This transition addresses criticism from environmental justice groups over the initial use of natural gas turbines.

“The temporary natural gas turbines that were being used to power the Phase I GPUs prior to grid connection are now being demobilized and will be removed from the site over the next two months.

“About half of the operating turbines will remain operating to power Phase II GPUs of xAI until a second substation (#22) already in construction is completed and connected to the electric grid, which is planned for the Fall of 2025, at which time the remaining turbines will be relegated to a backup power role,” the Chamber stated.

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xAI’s rapid development of Colossus reflects its ambition to advance AI capabilities, but the project has faced scrutiny for environmental impacts. The shift to Megapacks and grid power aims to mitigate these concerns while ensuring operational continuity.

The Megapack deployment underscores the collaboration among Musk’s companies, including Tesla, SpaceX, Neuralink, and The Boring Company. Tesla appears to be the common link between all of Musk’s companies. For example, The Boring Company built a tunnel in Giga, Texas. In addition, Musk has hinted at a potential collaboration between the Tesla Optimus Bot and Neuralink. And from January 2024 to February 2025, xAI invested $230 million in Megapacks, per a Tesla filing.

Tesla Energy reported a 156% year-over-year increase in Q1 2025, deploying 10.4 GWh of storage products, including Megapacks and Powerwalls. Tesla’s plans for a new Megapack factory in Waller County, Texas, which is expected to create 1,500 jobs in the area, further signal its commitment to scaling energy solutions.

As xAI leverages Tesla’s Megapacks to power Colossus, the integration showcases Musk’s interconnected business ecosystem. The supercomputer’s enhanced stability positions xAI to drive AI innovation, while Tesla’s energy solutions gain prominence, setting the stage for broader technological and economic impacts.

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Energy

Tesla Energy celebrates one decade of sustainability

Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.

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(Credit: Tesla)

Tesla Energy recently celebrated its 10th anniversary with a dedicated video showcasing several of its milestones over the past decade.

Tesla Energy has gone far since its early days, and it is now becoming a progressively bigger part of the company.

Tesla Energy Early Days

When Elon Musk launched Tesla Energy in 2015, he noted that the business is a fundamental transformation of how the world works. To start, Tesla Energy offered the Powerwall, a 7 kWh/10 kWh home battery system, and the Powerpack, a grid-capable 100 kWh battery block that is designed for scalability. A few days after the products’ launch, Musk noted that Tesla had received 38,000 reservations for the Powerwall and 2,500 reservations for the Powerpack

Tesla Energy’s beginnings would herald its quiet growth, with the company later announcing products like the Solar Roof tile, which is yet to be ramped, and the successor to the Powerwall, the 13.5 kWh Powerwall 2. In recent years, Tesla Energy also launched its Powerwall 3 home battery and the massive Megapack, a 3.9 MWh monster of a battery unit that has become the backbone for energy storage systems across the globe.

Key Milestones

As noted by Tesla Energy in its recent video, it has now established facilities that allow the company to manufacture 20,000 units of the Megapack every year, which should help grow the 23 GWh worth of Megapacks that have already been deployed globally. 

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The Powerwall remains a desirable home battery as well, with more than 850,000 units installed worldwide. These translate to 12 GWh of residential entry storage delivered to date. Just like the Megapack, Tesla is also ramping its production of the Powerwall, allowing the division to grow even more.

Tesla Energy’s Role

While Tesla Energy does not catch as much headlines as the company’s electric vehicle businesses, its contributions to the company’s bottom line have been growing. In the first quarter of 2025 alone, Tesla Energy deployed 10.4 GWh of energy storage products. Powerwall deployments also crossed 1 GWh in one quarter for the first time. As per Tesla in its Q1 2025 Update Letter, the gross margin for the Energy division has improved sequentially as well.

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Tesla Energy shines with substantial YoY growth in deployments

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Credit: Tesla Megapack

Tesla Energy shined in what was a weak delivery report for the first quarter, as the company’s frequently-forgotten battery storage products performed extraordinarily well.

Tesla reported its Q1 production, delivery, and deployment figures for the first quarter of the year, and while many were less-than-excited about the automotive side, the Energy division performed well with 10.4 GWh of energy storage products deployed during the first quarter.

This was a 156 percent increase year-over-year and the company’s second-best quarter in terms of energy deployments to date. Only Q4 2024 was better, as 11 GWh was recorded.

Tesla Energy is frequently forgotten and not talked about enough. The company has continued to deploy massive energy storage projects across the globe, and as it recorded 31.5 GWh of deployments last year, 2025 is already looking as if it will be a record-setting year if it continues at this pace.

Tesla Megapacks to back one of Europe’s largest energy storage sites

Although Energy performed well, many investors are privy to that of the automotive division’s performance, which is where some concern lies. Tesla had a weak quarter for deliveries, missing Wall Street estimates by a considerable margin.

There are two very likely reasons as to why this happened: the first is Tesla’s switchover to the new Model Y at its production facilities across the globe. Tesla said it lost “several weeks” of production due to the updating of manufacturing lines as it rolled out a new version of its all-electric crossover.

Secondly, Tesla could be facing some pressure from pushback against the brand, which is what many analysts will say. Despite the publicity of attacks on Tesla drivers and their vehicles, as well as the company’s showrooms, it would be safe to assume that we will have a better picture painted of what the issue is in Q2 after the company reports numbers in July.

New Tesla Model Y was a best-seller in China in March 2025

If Tesla is still struggling with lackluster delivery figures in Q2 after the Model Y is ramped and deliveries are more predictable and consistent, we could see where the argument for brand damage is legitimate. However, we are more prone to believe the Model Y, which accounts for most of Tesla’s sales, and its production ramp is likely the cause for what happened in Q1.

In what was a relatively bleak quarter, Tesla Energy still shines as the bright spot for the quarter.

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