While the attention over Tesla’s energy storage division has been directed toward Australia due the company’s bid to quickly deploy energy storage in order to solve the country’s energy crisis, they are still active stateside and investments go both ways.
Macquarie Capital, an Australian investment firm, announced this week that it secured financing with CIT bank to deploy 50 MW of Tesla Powerpack 2 with Advanced Microgrid Solutions (AMS). The projects will again be used for grid services by Southern California Edison (SCE).
Back in 2015, Tesla signed a supply contract with AMS to supply up to 500 MWh worth of Powerpacks for AMS’s projects.
They have already deployed several projects, like 34 MWh in battery capacity for water treatment facilities and Tesla Powerpack 2 projects at Invesco’s buildings, but this new agreement will likely result in the largest deployment so far.
Macquarie confirmed the new projects this week as part of an agreement they made with AMS last year:
“The financing, led by CIT, backs a 50MW fleet of behind-the-meter, battery storage systems located in certain grid-constrained pockets of the West Los Angeles Basin service territory of Southern California Edison (“SCE”) that Macquarie Capital acquired from Advanced Microgrid Solutions (“AMS”) in August 2016.”
The deal is reportedly worth $200 million.
They confirmed that they will use the Tesla Powerpack 2 for the projects. Tesla’s Powerpack systems usually have an energy capacity for 4 hours of power output. Therefore, 50 MW should result in about 200 MWh.
Tesla’s biggest Powerpack project yet is a 80 MWh Powerpack station with Southern California Edison – pictured above.
SCE’s grid covers 15 million people and the utility has been adding energy storage at an unprecedented pace following the shutdown of the Aliso Canyon natural gas reservoir, which was the source for the power plants in the region, after the catastrophic rupture in 2015 that led California Governor Jerry Brown to issue a state of emergency.
Nick Butcher, Global Head of Infrastructure for Macquarie Capital, commented on the announcement:
“As an active developer in infrastructure assets globally, Macquarie believes there is tremendous opportunity for this asset class, and looks forward to continuing to grow its presence with leading innovators in the space including AMS, CIT and Tesla,”
Susan Kennedy, CEO of AMS, added:
“Macquarie is financing a revolution in the energy industry. The era of energy storage has begun.”
They say that they will deploy the Powerpacks in phases over the next 12-24 months. SCE will purchase capacity from the Macquarie-owned fleet of behind-the-meter, battery-based energy storage systems under 10-year capacity contracts to provide load reduction services as part of SCE’s plan to modernize the grid by 2022.