PG&E and Tesla Launch Pilot Program to Create Virtual Power Plant

(Credit: Pixabay)

Pacific Gas and Electric Company (PG&E) and Tesla have launched a new pilot program that creates a virtual power plant, to help support electric grid reliability and save customers money.

On June 22, Tesla invited approximately 25,000 PG&E customers with Powerwalls to join the VPP and help form the world’s largest distributed battery. In the first two weeks of the new program, more than 3,000 customers have expressed interest in enrolling, with more than 1,500 customers officially in the program.

Through this collaboration, Tesla is participating in PG&E’s Emergency Load Reduction Program (ELRP) pilot by enrolling and combining residential Powerwall home battery systems into a virtual power plant to discharge power back to the grid in California during times of high electricity demand. Participating customers will receive compensation for the energy their Powerwalls discharge.

PG&E says that VPPs are a valuable resource for supporting grid reliability and an essential part of California’s clean energy future. In collaborating with Tesla, PG&E says they are further integrating behind-the-meter battery-based VPPs on the largest scale yet, helping to make customer resiliency technologies more accessible.

This venture aims to accelerate the growing trend of customers adopting distributed energy resource technologies—which can both support customer energy needs and contribute to the reliability of the grid—by expanding access to new customer program offerings and participation opportunities.

If all eligible customers throughout PG&E’s Northern and Central California service area participate in the VPP, the available megawatts would be equivalent to the energy generated by a small power plant.