Tesla Inc (NASDAQ: TSLA) recently said that they would work with companies in Japan to develop an energy storage center in Hokkaido to help stabilize power systems as demand for renewable energy continues to rise. This US-based company will work hand-in-hand with Global engineering, a Japanese power aggregator and retailer, and Ene-Vision, an engineering firm, to build this facility. The facility will connect to the power grid with a 6,095 kWh (kilowatts hour) capacity that’ll have the ability to give power to around 500 households or so.
Nature of the project
Tesla will give access to its proprietary Megapack battery tech to help get the job done. This project is predicted to start in the summer of 2022. Global Engineering will play the role of the operator and provide the wholesale electricity market with power. Ene-Vision, on the other hand, will handle construction, procurement, and engineering. The estimated cost for the project is about $2.7 million, according to a Global Engineering official.
The project’s primary aim is to help expand renewable energy efforts further and reduce power costs by stabilizing outputs and absorbing fluctuations via the use of storage batteries and generators, sources from Global Engineering said. Tesla is expected to start the project by delivering its Megapack batteries to japan. This six-megawatt hour technology can meet the power needs that’ll be required.
Large-scale battery technology is typically known to help support renewable energy installations, where surplus energy is stored and then released later. These systems are popping up on power grids all across the globe and are becoming more popular year in year out. The move into the power sector of Japan is similar to the moves Amazon made both in Australia and the United States itself. Tesla’s entry into the market will most likely hasten the introduction of renewables as well.