Amazon is turning to Tesla in order to deploy energy storage capacity at their distribution centers.
After a deal to add Tesla Powerpacks to a UK facility earlier this year, now Amazon is working with Tesla again at another distribution center.
The last project included both a 4 MW solar array and 3.77 MW battery system installed at a large fulfillment center in Tilbury – east of London.
Amazon has hundreds of locations like this one around the world and at the time, it looked like if this project turned out to be successful in reducing energy costs, Amazon could decide to deploy Tesla Powerpacks at more locations.
A few months later, we’ve now learned that the internet retail giant is planning a similar project at their Coalville facility in Leicestershire.
UK’s Solar Power Portal reported about the new project:
“The size of the Tesla battery system to be used was not clear from the planning documents, however proposed building elevations suggest a system comprised of 15 Powerpack units.”
Amazon reportedly plans more similar projects over the next 18 months.
Tesla Energy is aiming to ramp up its deployment of energy storage through several different channels. These deployments will range from Powerwalls at the residential level to large utility-scale projects, like the new giant project with PG&E in California, to the smaller scale commercial projects, like those ones with Amazon.
I like to see Amazon dipping their toes in energy storage. They are a major energy user – not only through their distribution centers for their retail effort, but also because of their giant internet services and data centers.
After these new projects in the UK, I can see Amazon ramping up the deployment of solar and energy storage projects at locations around the world.
They have plenty of money and now is the best time to do it.