Tesla partners with California utility on virtual power plant

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Tesla partners with California utility on virtual power plant
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They’ll pay Powerwall owners to participate.

earlier this year that asks Powerwall owners to volunteer to participate to show the grid operator how such a program might work. For now, without any rule changes, Tesla is offering the volunteers a $40 Tesla gift card “as a token of appreciation.”

In California, PG&E customers who own a Powerwall can sign up to join the virtual power plant through the Tesla app. Once they’re in the program, called the Emergency Load Reduction Program, they’ll start receiving push notifications ahead of events when the grid needs emergency support. To keep some backup power for themselves, they’ll be able to specify a “backup reserve level.” Tesla won’t discharge the battery below that level.

After accumulating $2 for every additional kWh sent to the grid, participants will receive payments from Tesla “on an annual basis, or on a more frequent basis as determined by Tesla.” For this season, participants can expect to be paid by the end of March 2023, according to Tesla. California’s grid is particularly stressed this summer. Energy demand typically rises during hot months while people blast their air conditioners. To make things worse, an extreme drought isto cut the state’s hydroelectricity supply in half this season. Hot, dry weather also raises the risk of wildfire, so PG&E has made a habit of implementing preemptive power outages in an effort to prevent live power lines from sparking blazes.

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