Key Takeaways
- Tesla has inked a deal with Chinese partners to construct a grid-side energy storage station in Shanghai using its Megapack energy-storage batteries.
- The grid-side energy storage station will participate in electricity spot trading, helping balance peak and off-peak power demand in the local grids and enhance grid stability.
- Tesla anticipates a year-on-year increase of 50% in energy storage deployments in 2025.
Shanghai: US car maker Tesla on Friday inked a deal with Chinese partners to build a grid-side energy storage station in Shanghai using its Megapack energy-storage batteries.
Tesla’s expansion into China’s energy storage market is a significant milestone. The company’s investment of 4 billion yuan (USD 556 million) will help connect its facility with China’s vast power grid, the largest in the world. **China’s energy storage market** is expected to grow significantly in the coming years.
The gigawatt-hour-scale energy storage station is to be located in the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, as per the deal signed by Tesla, the administrative committee of the Lin-gang Special Area, the people’s government of Shanghai’s Fengxian District, and China Kangfu International Leasing Co., Ltd.
It will be Tesla’s first grid-side energy storage station to be built on the Chinese mainland. Dong Kun, general manager of Tesla China’s energy business, said the station, once launched, will participate in electricity spot trading, helping balance peak and off-peak power demand in the local grids and enhance grid stability.
Also, Tesla is set to enhance its collaboration with China Kangfu to roll out the zero-carbon energy solution globally. In February this year, Tesla’s new Megafactory in the Lin-gang Special Area, its second plant in Shanghai after the Gigafactory, started production of Megapack batteries.
Tesla anticipates a year-on-year increase of 50% in energy storage deployments in 2025.
