Summary
– Tesla and renewable energy developer Arevon are working on a Megapack project that will exceed 1 GWh in Kern County, California
– The combined PV and storage site will provide enough electricity for 200,000 homes annually
– Arevon CEO highlights the importance of solar-plus-storage projects for grid stability
– Arevon secured over $1 billion in financing for the Eland expansion project
– Tesla also involved in other large battery projects, with the energy sector expected to outpace automotive business in 2024
Article
Tesla is currently working on a Megapack buildout project in partnership with renewable energy developer Arevon, which will top 1 GWh upon completion. The project is taking place at an existing site in Kern County, California, and will bring the combined PV and storage site up to 300 MW/1.2 GWh, providing enough electricity to power approximately 200,000 homes annually. The second phase of the project, known as Eland 2, is set to go online in the first quarter of 2025 and will double the capacity of the already running Eland 1 site, offering 150 MW/600 MWh alongside 758 MW of PV.
Arevon CEO Kevin Smith emphasized the importance of solar-plus-storage projects like Eland 1 and 2 in Arevon’s overall strategy. These hybrid power plants provide a more reliable and predictable energy yield during peak electricity demand periods, enabling consistent returns across their diverse, multi-gigawatt portfolio. Arevon secured over $1 billion in financing commitments for the Eland expansion project, with investments from various financial institutions. Energy from the site is contracted with the Southern California Public Power Authority and will eventually provide power to 10 different municipalities around Kern County.
In addition to the Eland project, Tesla is involved in several other large-scale battery projects, including a 250 MW/1 GWh solar and energy storage site being built in Riverside County, California. Tesla’s deployment and profitability of Megapacks reached an all-time high in the first quarter of the year, according to statements from the company during its recent earnings call. The company expects its energy products to outpace its automotive business in 2024, with the energy sector becoming Tesla’s highest-margin business.
Overall, the partnership between Tesla and Arevon on the Megapack project in Kern County highlights the importance of solar-plus-storage projects in providing grid stability and resiliency to Southern California. The expansion of the Eland site demonstrates Arevon’s commitment to fostering a sustainable energy infrastructure and the financial strength and expertise of their team. With funding secured for the project and contracts in place for energy supply, the Eland project is poised to make a significant impact on the region’s energy landscape and contribute to the ongoing energy transition.Tesla’s involvement in various large-scale battery projects further solidifies its position as a leader in the energy sector, with Megapack deployment and profitability reaching record levels and the company expecting continued growth and success in this area in the coming years.
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