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Tesla Powerwall network to form Adelaide’s first renewable energy digital marketplace

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The Australian Renewable Energy Agency (ARENA) recently announced that plans are underway for Tesla to provide 1,200 Powerwall 2 batteries to local electricity provider Simply Energy for the creation of an 8MW virtual power plant in the city of Adelaide.

The Adelaide VPP is the fourth virtual power plant announced in Australia over the past two years, the biggest of which being Tesla’s own initiative to construct a 50,000-strong 250 MW/650 MWh system in SA. The 1,200 households in Adelaide’s VPP will be able to acquire Tesla Powerwall 2 home energy storage units at a 40% discount due to subsidies. The batteries, working together with residential rooftop solar panels, are estimated to save up to 20% of Adelaide residents’ power bill, according to a Renew Energy report.

Apart from helping residents save on their electricity bills, Simply Energy CEO Carly Wishart stated that the proposed VPP is also expected to provide backup electricity to other areas. With the system in place, the 8MW VPP in Adelaide would be able to function similar to conventional diesel-powered gas or turbine plant. The Adelaide VPP can be an alternative to facilities like the Pelican Point plant in South Australia, a facility tasked to meet the area’s electricity needs when the grid needs backup.

“Simply Energy is proud to be able to deliver this innovative solution that helps our customers reduce their energy costs while also providing additional energy security in South Australia,” Wishart said.

Once completed, the proposed 8MW Adelaide virtual power plant will feature Australia’s first digital marketplace for renewable energy. The digital marketplace, dubbed as the Decentralized Energy Exchange (deX), will allow users to purchase and sell electricity generated by residential battery storage units and rooftop solar panels during peak periods. 

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In a blog post about the project, ARENA CEO Ivor Frischknecht stated that the proposed Adelaide VPP will be a good opportunity to demonstrate the viability of using an aggregated network of home batteries as a means to improve grid stability. The ARENA CEO is also optimistic about the potential of the deX model.

“This deployment of a further 1200 batteries into South Australia’s grid will deliver benefits to both individual customers and energy networks and demonstrate a potential model for how distributed energy resources can be operated at large scale in the future to help reduce energy prices. This trial will also demonstrate the commercial benefits of including a virtual power plant into a distributed energy market platform, such as deX.” 

As we noted in a previous report, Tesla’s planned 250 MW/650 MWh VPP for South Australia recently met a possible roadblock, after newly-elected South Australia premier Steven Marshall stated that his government does not have any plans to support the project. Amidst criticisms, however, Marshall eventually took a softer stance on the Elon Musk-led company’s VPP plan a few days later, stating that he would not be putting a stop to renewable energy projects that were started by the previous administration, such as Tesla’s 50,000-strong virtual power plant.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Energy

Tesla inks multi-billion-dollar deal with LG Energy Solution to avoid tariff pressure

Tesla has reportedly secured a sizable partnership with LGES for LFP cells, and there’s an extra positive out of it.

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Credit: Tesla

Tesla has reportedly inked a multi-billion-dollar deal with LG Energy Solution in an effort to avoid tariff pressure and domesticate more of its supply chain.

Reuters is reporting that Tesla and LGES, a South Korean battery supplier of the automaker, signed a $4.3 billion deal for energy storage system batteries. The cells are going to be manufactured by LGES at its U.S. factory located in Michigan, the report indicates. The batteries will be the lithium iron phosphate, or LFP, chemistry.

Tesla delivers 384,000 vehicles in Q2 2025, deploys 9.6 GWh in energy storage

It is a move Tesla is making to avoid buying cells and parts from overseas as the Trump White House continues to use tariffs to prioritize domestic manufacturing.

LGES announced earlier today that it had signed a $4.3 billion contract to supply LFP cells over three years to a company, but it did not identify the customer, nor did the company state whether the batteries would be used in automotive or energy storage applications.

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The deal is advantageous for both companies. Tesla is going to alleviate its reliance on battery cells that are built out of the country, so it’s going to be able to take some financial pressure off itself.

For LGES, the company has reported that it has experienced slowed demand for its cells in terms of automotive applications. It planned to offset this demand lag with more projects involving the cells in energy storage projects. This has been helped by the need for these systems at data centers used for AI.

During the Q1 Earnings Call, Tesla CFO Vaibhav Taneja confirmed that the company’s energy division had been impacted by the need to source cells from China-based suppliers. He went on to say that the company would work on “securing additional supply chain from non-China-based suppliers.”

It seems as if Tesla has managed to secure some of this needed domestic supply chain.

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Tesla Shanghai Megafactory produces 1,000th Megapack for export to Europe

The Shanghai Megafactory was able to hit this milestone less than six months after it started producing the Megapack. 

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Credit: Tesla Asia/X

Tesla Energy has announced a fresh milestone for its newest Megapack factory. As per the electric vehicle maker, the Shanghai Megafactory has successfully produced its 1,000th Megapack battery. 

The facility was able to hit this milestone less than six months after it started producing the grid-scale battery system. 

New Tesla Megapack Milestone

As per Tesla Asia in a post on its official accounts on social media platform X, the 1,000th Megapack unit that was produced at the Shanghai Megafactory would be exported to Europe. As noted in a CNEV Post report, Tesla’s energy products are currently deployed in over 65 countries and regions globally. This allows Tesla Energy to compete in energy markets that are both emerging and mature.

To commemorate the 1,000th Megapack produced at the Shanghai Megafactory, the Tesla China team posted with the grid-scale battery with celebratory balloons that spelled “Megapack 1000.” The milestone was celebrated by Tesla enthusiasts on social media, especially since the Shanghai Megafactory only started its operations earlier this year.

Quick Megafactory Ramp

The Shanghai Megafactory, similar to Tesla’s other key facilities in China, was constructed quickly. The facility started its construction on May 23, 2024, and it was hailed as Tesla’s first entry storage project outside the United States. Less than a year later, on February 11, 2025, the Shanghai Megafactory officially started producing Megapack batteries. And by March 21, 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.

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While the Shanghai Megafactory is still not at the same level of output as Tesla’s Lathrop Megafactory, which produces about 10,000 Megapacks per year, its ramp seems to be quite steady and quick. It would then not be surprising if Tesla China announces the Shanghai Megafactory’s 2,000th Megapack milestone in the coming months.

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Tesla launches first Virtual Power Plant in UK – get paid to use solar

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom.

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Credit: Tesla Energy | X

Tesla has launched its first-ever Virtual Power Plant program in the United Kingdom. This feature enables users of solar panels and energy storage systems to sell their excess energy back to the grid.

Tesla is utilizing Octopus Energy, a British renewable energy company that operates in multiple markets, including the UK, France, Germany, Italy, Spain, Australia, Japan, New Zealand, and the United States, as the provider for the VPP launch in the region.

The company states that those who enroll in the program can earn up to £300 per month.

Tesla has operated several VPP programs worldwide, most notably in California, Texas, Connecticut, and the U.S. territory of Puerto Rico. This is not the first time Tesla has operated a VPP outside the United States, as there are programs in Australia, Japan, and New Zealand.

This is its first in the UK:

Tesla is not the only company that is working with Octopus Energy in the UK for the VPP, as it joins SolarEdge, GivEnergy, and Enphase as other companies that utilize the Octopus platform for their project operations.

It has been six years since Tesla launched its first VPP, as it started its first in Australia back in 2019. In 2024, Tesla paid out over $10 million to those participating in the program.

Tesla VPP program in California hits new capacity milestone

Participating in the VPP program that Tesla offers not only provides enrolled individuals with the opportunity to earn money, but it also contributes to grid stabilization by supporting local energy grids.

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