Tesla to supply AMS with batteries for US utility-scale energy storage

Tesla Powerpack deal with AMS utility-scale projects
AMS will use the Tesla Powerpack storage systems to provide back-up power to US utilities integrating customer load

US energy technology company Advanced Microgrid Solutions (AMS) finalised an agreement last week with Tesla Motors to procure battery capacity of up to 500 mega-watt hours (MWh) for use in its utility-scale energy storage projects.

Tesla will install 5,000 Powerpack storage systems in AMS’ industrial and commercial facilities that offer back-up services to utilities using customer load.

About 40% of the order will be used to develop 50 MWh of storage for electric utility Southern California Edison.

In November 2014, both companies signed an agreement in which AMS would construct a series of hybrid-electric buildings for the utility.

AMS will accumulate the distributed systems into regional fleets that offer dispatchable, clean load reduction, the company said.

Jackalyne Pfannenstiel, co-founder at AMS, said: “This is all about building resilience into the grid.

“Energy storage turns traditional demand response into firm, reliable capacity – it changes everything about the way the grid is operated.”

Hybrid-electric buildings

AMS also confirmed last week that it has sealed a deal with construction and engineering services company Black & Veatch Corp.

The pair will on work a 10 MHw hybrid-electric building project in Irvine, California next year.

Depending on the project type, the company may use other battery types, other than the lithium-ion. It will also sign batteries agreements with other technology companies.

Residential lithium-ion battery

In early May, Tesla Motors also launched a suite of rechargeable lithium-ion batteries for residential application.

The company launched the Powerwall Home Battery, consisting of a series of batteries ranging from 7 kWh to 10 kWh.

The 10 kWh battery works as a back-up and has the potential to run an entire household, should a power outage occur, while the 7 kWh is utilised for everyday use.