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 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.
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:
Our first VPP in the UK
You can get paid to share your energy – store excess energy in your Powerwall & sell it back to the grid
You’re making £££ and the community is powered by clean energy
Win-win pic.twitter.com/evhMtJpgy1
— Tesla UK (@tesla_uk) July 17, 2025
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.
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.
Energy
Tesla Lathrop Megafactory celebrates massive Megapack battery milestone
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments.
The Tesla Lathrop Megafactory recently achieved a new milestone. As per the official Tesla Megapack account on X, the Lathrop Megafactory has produced its 15,000th Megapack 2 XL battery.
15,000 Megapack Batteries
Tesla celebrated the milestone with a photo of the Lathrop Megafactory team posing with a freshly produced Megapack battery. To commemorate the event, the team held balloons that spelled out “15,000” as they posed for the photo.
The Tesla Megapack is the backbone of Tesla Energy’s battery deployments. Designed for grid-scale applications, each Megapack offers 3.9 MWh of energy and 1.9 MW of power. The battery is extremely scalable, making it perfect for massive energy storage projects.
More Megafactories
The Lathrop Megafactory is Tesla’s first dedicated facility for its flagship battery storage system. It currently stands as the largest utility-scale battery factory in North America. The facility is capable of producing 10,000 Megapack batteries every year, equal to 40 GWh of clean energy storage.
Thanks to the success of the Megapack, Tesla has expanded its energy business by building and launching the Shanghai Megafactory, which is also expected to produce 40 GWh of energy storage per year. The ramp of the Shanghai Megafactory is quite impressive, with Tesla noting in its Q1 2025 Update Letter that the Shanghai Megafactory managed to produce over 100 Megapack batteries in the first quarter alone.
Tesla Energy’s Potential
During the first quarter earnings call, CEO Elon Musk stated that the Megapack is extremely valuable to the energy industry.
“The Megapack enables utility companies to output far more total energy than would otherwise be the case… This is a massive unlock on total energy output of any given grid over the course of a year. And utility companies are beginning to realize this and are buying in our Megapacks at scale,” Musk said.
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.
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.
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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