A recent press release by the Public Utility Commission of Texas (PUCT) reveals that electric vehicle company, Tesla (NASDAQ:TSLA) will be providing Virtual Power Plant (VPP) solutions to the state's power grid. This initiative is a component of the Aggregate Distributed Energy Resource (ADER) initiative promoted by PUCT in 2022.
According to the press release, “Two ‘virtual power plants’ (VPPs) are now qualified and able to provide dispatchable power to the Texas electric grid, which is operated by the Electric Reliability Council of Texas (ERCOT).”
Utilizing its expanding fleet of Powerwalls to combine their power capabilities and provide services to electric grids, all the while providing compensation to homeowners for utilizing their residential battery packs. The California virtual power plant run by the company has already shown its success in the first year.
“Today’s launch of the first phase of the Tesla Virtual Power Plant is a milestone for Texas residents, Texas distribution utilities and the ERCOT grid,” said Tesla SVP of Powertrain and Energy Engineering Drew Baglino.
The PUCT mentioned that there are currently eight ADERs involved in the pilot project, but at the moment, only two of them, both represented by Tesla Electric, have finished the necessary testing for the program.
“Our collective work has allowed Tesla to build a decentralized energy ecosystem that seamlessly integrates stored solar energy from Powerwalls onto the ERCOT grid.”
Shares of TSLA are down 2.73% in mid-day trading on Thursday.