Energy
Tesla Virtual Power Plant in Australia is proving that community-powered grids are feasible
Tesla’s Virtual Power Plant (VPP) in South Australia is proving that a network of homes with residential solar and battery storage systems can be used to effectively aid the national electricity grid. The project is still in its early stages, but based on its performance so far, Tesla’s VPP is looking to be yet another disruptive force in Australia’s energy market.
The Australian Energy Market Operator (AEMO) recently released the first report from its Virtual Power Plant Demonstration Program. The report showed how consumer devices, when aggregated and coordinated, can contribute to a secure electricity system in a real-world setting. Based on the report, the South Australia VPP has been tapped to support the region’s grid several times since its first phases were completed, and so far, the verdict has been resoundingly positive.
In October 2019, for example, the VPP was tapped to address an unexpected failure at one of the region’s biggest generating units at the Kogan Creek Power Station, which took out 748 MW of capacity. Immediately after the failure, the Tesla VPP detected the frequency excursion and responded quickly, helping in frequency recovery. The quickness of the Virtual Power Plant was impressive, and it hinted that a community-driven, sustainable backup system might very well be feasible.
Even in instances when the VPP underperformed, the system still showed potential. During the Victoria and South Australia regional separation event in November 2019, which left South Australia islanded for almost five hours, the Virtual Power Plant was only able to deliver 828 kW out of the needed 1 MW, as noted by Energy Locals and Tesla in their report. This proved to be a small speed bump for the VPP, though, as the issue was immediately fixed by remotely reconfiguring non-compliant systems in the power plant.
“Since this event, Tesla informs AEMO that it has introduced daily checks on all systems to ensure they are responding according to the expected configuration requirements. It is expected that this approach will mitigate the risk of any future under-delivery,” the report read.
Tesla’s South Australia Virtual Power Plant had another chance to prove itself in December 2019, when the National Electricity Market experienced both high and low-frequency events within 45 minutes of each other. The response from the VPP was quick, charging its batteries to lower system frequency, and then discharging the energy storage units to raise system frequency. This event, if any, showed that the community-driven system was very flexible.
Tesla has provided its own insights based on the South Australia Virtual Power Plant’s performance so far. The company noted that the system had several opportunities to demonstrate its capabilities, as well as provide hints at its revenue earning potential. “Specifically, the capability of aggregated assets to rapidly respond to frequency deviations and provide critical system security services. This has also meant VPPs can access revenues from markets that aggregated assets, particularly smaller aggregated assets, have traditionally been excluded from,” Tesla noted.
What is most remarkable is that Tesla’s Virtual Power Plant in South Australia is already addressing the needs of the grid despite being only fractionally complete. The project is reportedly in its second phase, which involves the network growing to about 1,100 homes equipped with residential solar and Powerwall batteries. This is but the tip of the iceberg for Tesla’s actual VPP plans, as the electric car maker aims to build a network of 50,000 homes that are ready to serve as backup to the region’s grid anytime. If ~1,100 homes can already perform this well, then it’s pretty exciting to infer how capable a completed, 50,000-strong Tesla Virtual Power Plant could be.
Energy
Tesla Megapack Megafactory in Texas advances with major property sale
Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.
Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.
In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.
The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.
According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.
Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.
Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.
The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.
Energy
Tesla meets Giga New York’s Buffalo job target amid political pressures
Giga New York reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease.
Tesla has surpassed its job commitments at Giga New York in Buffalo, easing pressure from lawmakers who threatened the company with fines, subsidy clawbacks, and dealership license revocations last year.
The company reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease at the state-built facility.
As per an employment report reviewed by local media, Tesla employed 2,399 full-time workers at Gigafactory New York and 1,060 additional employees across the state at the end of 2025. Part-time roles pushed the total headcount of Tesla’s New York staff above the 3,460-job target.
The gains stemmed in part from a new Long Island service center, a Buffalo warehouse, and additional showrooms in White Plains and Staten Island. Tesla also said it has invested $350 million in supercomputing infrastructure at the site and has begun manufacturing solar panels.
Empire State Development CEO Hope Knight said the agency was “very happy” with Giga New York’s progress, as noted in a WXXI report. The current lease runs through 2029, and negotiations over updated terms have included potential adjustments to job requirements and future rent payments.
Some lawmakers remain skeptical, however. Assemblymember Pat Burke questioned whether the reported job figures have been fully verified. State Sen. Patricia Fahy has also continued to sponsor legislation that would revoke Tesla’s company-owned dealership licenses in New York. John Kaehny of Reinvent Albany has argued that the project has not delivered the manufacturing impact originally promised as well.
Knight, for her part, maintained that Empire State Development has been making the best of a difficult situation.
“(Empire State Development) has tried to make the best of a very difficult situation. There hasn’t been another use that has come forward that would replace this one, and so to the extent that we’re in this place, the fact that 2,000 families at (Giga New York) are being supported through the activity of this employer. It’s the best that we can have happen,” the CEO noted.
Energy
Tesla launches Cybertruck vehicle-to-grid program in Texas
The initiative was announced by the official Tesla Energy account on social media platform X.
Tesla has launched a vehicle-to-grid (V2G) program in Texas, allowing eligible Cybertruck owners to send energy back to the grid during high-demand events and receive compensation on their utility bills.
The initiative, dubbed Powershare Grid Support, was announced by the official Tesla Energy account on social media platform X.
Texas’ Cybertruck V2G program
In its post on X, Tesla Energy confirmed that vehicle-to-grid functionality is “coming soon,” starting with select Texas markets. Under the new Powershare Grid Support program, owners of the Cybertruck equipped with Powershare home backup hardware can opt in through the Tesla app and participate in short-notice grid stress events.
During these events, the Cybertruck automatically discharges excess energy back to the grid, supporting local utilities such as CenterPoint Energy and Oncor. In return, participants receive compensation in the form of bill credits. Tesla noted that the program is currently invitation-only as part of an early adopter rollout.
The launch builds on the Cybertruck’s existing Powershare capability, which allows the vehicle to provide up to 11.5 kW of power for home backup. Tesla added that the program is expected to expand to California next, with eligibility tied to utilities such as PG&E, SCE, and SDG&E.
Powershare Grid Support
To participate in Texas, Cybertruck owners must live in areas served by CenterPoint Energy or Oncor, have Powershare equipment installed, enroll in the Tesla Electric Drive plan, and opt in through the Tesla app. Once enrolled, vehicles would be able to contribute power during high-demand events, helping stabilize the grid.
Tesla noted that events may occur with little notice, so participants are encouraged to keep their Cybertrucks plugged in when at home and to manage their discharge limits based on personal needs. Compensation varies depending on the electricity plan, similar to how Powerwall owners in some regions have earned substantial credits by participating in Virtual Power Plant (VPP) programs.
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