Tesla has officially signed a ¥4 billion (C$764/US$557 million) deal to build its first grid-scale battery energy storage station in China, leveraging its Megapack technology.
Their growing use helps stabilize power grids, prevent outages, and reduce reliance on fossil fuels. This project is Tesla’s first large-scale energy storage installation in China, complementing its existing automotive manufacturing presence in the city through Giga Shanghai.
"The grid-side energy storage power station is a ''smart regulator'' for urban electricity, which can flexibly adjust grid resources," Tesla said on Weibo, according to a Google translation. This would "effectively solve the pressure of urban power supply and ensure the safe, stable and efficient electricity demand of the city," it added.
What are commercial energy storage systems? A commercial energy storage system allows facilities like businesses, industrial parks, charging stations and virtual power plants (VPP) to control how they use energy, set electricity prices and tackle blackouts in a flexible and smart way.
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The power station is expected to be completed by the end of 2025 and will deliver around 300 megawatt-hours (MWh) of electricity storage capacity in its first phase.
The station will be located in Shanghai, adjacent to Tesla’s new Megapack manufacturing facility, which began full-scale production in February 2025. Tesla’s Megapacks …
What are commercial energy storage systems? A commercial energy storage system allows facilities like businesses, industrial parks, charging stations and virtual power plants …
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"The grid-side energy storage power station is a ''smart regulator'' for urban electricity, which can flexibly adjust grid resources," Tesla said on Weibo, according to a …
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