Summary
– Contact Energy partners with Tesla for a 100 MW battery storage system in New Zealand
– The battery installation in Glenbrook is expected to cost NZD 163 million
– The system will utilize Tesla Megapack 2 XL battery units to power 44,000 homes during peak winter demand
– Construction is set to begin immediately with expectation for operational capacity in Q1 2026
– Tesla’s CEO Elon Musk highlighted the value and growth of Megapacks during the first quarter earnings call
Article
New Zealand power company Contact Energy has partnered with Tesla to build a 100 MW battery storage system in Glenbrook, near Auckland. The project is expected to cost up to NZD 163 million and will utilize Tesla Megapack 2 XL battery units. The installation will have enough electricity to power 44,000 homes during peak winter demand for over two hours. Tesla will provide commissioning and long-term maintenance services for the battery.
The agreement between Tesla and Contact Energy includes the option to expand the battery’s capacity to 130 MW. Construction at the Glenbrook site will begin immediately, with Contact managing the overall project. The Megapack farm is projected to be operational in the first quarter of 2026. Due to the quick deployment design of the Tesla Megapack, this timeframe seems feasible despite the size of the installation.
Tesla’s Megapack batteries have been a source of growth for the company, with production taking place at the Lathrop Megafactory in California. The global supply of Megapacks is expected to improve once the Shanghai Megafactory in China is completed. Elon Musk emphasized the value of Megapacks during the first quarter earnings call, stating that energy storage deployments of Megapacks reached an all-time high in Q1, leading to record profitability for the energy business.
Construction is ongoing at the Shanghai Megafactory, and Musk anticipates continued growth in the energy business in the coming quarters and years. He highlighted that energy storage deployments with Megapacks are increasing significantly faster than the car business. This partnership between Tesla and Contact Energy in New Zealand is part of Tesla’s ongoing efforts to expand its presence in the energy storage sector globally.
The collaboration with Contact Energy and the construction of a 100 MW battery storage system in New Zealand demonstrates Tesla’s commitment to sustainable energy solutions. The Megapack project in Glenbrook will contribute to the overall energy goals of the region and provide a reliable source of power during peak demand periods. As Tesla continues to innovate and expand its energy storage capabilities, it is positioning itself as a leader in the transition to renewable energy sources.
With the completion of the Glenbrook Megapack farm expected in 2026, and the potential for further expansion of the battery’s capacity, Tesla’s partnership with Contact Energy marks a significant milestone in the progression towards clean and renewable energy production. The combination of Tesla’s technology and Contact Energy’s project management expertise will likely result in a successful and impactful energy storage system that benefits the environment and the local community in New Zealand.
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