Tesla lands 15.3 GWh Megapack supply contract

US developer Intersect Power is looking to deploy 15.3 GWh of Tesla’s Megapacks across its  solar-plus-storage project portfolio through 2030. 

This agreement, when combined with previous commitments, will see Intersect Power roll out nearly 10 GWh of Megapacks by the end of 2027.  

Tesla has previously supplied Megapacks for Intersect Power’s Base Portfolio of solar-plus-storage facilities totaling 2.4 GWh in operation or under construction. This includes 1 GWh in operation at the Oberon solar-plus-storage facility (pictured above) and 448 MWh in operation at the Athos III solar-plus-storage facility in California.

The developer is currently installing an additional 1 GWh of Tesla Megapacks at its Radian and Lumina solar-plus-storage facilities in Texas, which will be fully operational later this year. 

Intersect Power plans to utilize over half of this new order of Megapacks for four projects in California and Texas expected to achieve operations by the end of 2027, “including what will be some of the largest battery installations in the country,” the developer said.

The balance will be utilized in Intersect Power’s subsequent portfolio of solar-plus-storage facilities, which are slated to come online in 2028-30.

“This storage franchise is the perfect complement to our multi-billion dollar expansion of renewable generation that is expected to more than triple the size of our company over the next three years,” said Sheldon Kimber, CEO of Intersect Power.

Intersect Power develops, owns, and operates some of the country’s largest battery storage projects as part of its solar-plus-storage facilities in Texas and California, which comprises 2.2 GW of operating solar PV and 2.4 GWh of storage in operation or construction.

Only a day before disclosing the supply deal with Tesla, the developer announced the closing of two separate transactions representing an aggregate of $837 million of financing commitments for the construction and operation of three standalone battery energy storage systems in Texas – Lumina I, Lumina II, and Radian.

Each project comprises 86 Tesla Megapacks and will provide a capacity of 320 MWh of battery storage with a two-hour duration.

The newly ordered Megapacks to be installed at the Intersect Power projects are scheduled to be delivered in 2025 and 2026 and will be produced in Tesla’s Megafactory in Lathrop, California. 

Earlier this year, Tesla broke ground on another Megafactory in Shanghai. Once in full swing, each facility will be capable of delivering up to 40 GWh of Megapacks annually.

This year is projected to become the first year on record in which the growth rate of deployments and revenue in Tesla’s energy storage business should outpace the automotive business.

In Q2 2024, Tesla Energy posted the highest quarterly deployment in the company’s history to date, amounting to 9.4 GWh. The company’s cumulative deployments this year have already reached 13.5 GWh by the end of June.

This is close to its 2023 cumulative deployments, which stood at 14.7 GWh. Total installations for 2023 were more than double than in 2022, up by 125%. The division’s profit nearly quadrupled.