Tesla & California's Pacific Gas & Electric team to back up the grid

PG&E and Tesla team up to power the grid

Thousands of participating Tesla Powerwall owners are opting-in to aid California power utility Pacific Gas & Electric’s (PG&E) efforts to siphon power back to a taxed electricity grid. 

The initiative, designed to harness the bi-directional charging abilities of Tesla’s wall-charging units, is establishing a ‘virtual power plant’ (VPP) that offers relief during peak electricity use times.

This article will examine the viability of the endeavor, and detail how similar bi-directional charging capabilities could be deployed across the United States.  

Backing the grid 

As detailed by Green Car Reports, Tesla invited approximately 25,000 Powerwall users who consume power via PG&E to participate in the program on June 22. In the two weeks following the announcement, over 3,000 customers volunteered to participate, doubling the 1,500 officially enrolled in the test program.

Under the test’s terms, users who discharge their power reserves during ‘peak’ times between 4-9pm will receive $2 for every kWh shared. Utilizing this power will help to avoid spikes during high usage periods, and bolster efforts to conserve taxation on the electricity of the grid itself. 

The pilot program is one aspect of PG&E’s Emergency Load Reduction Program, a five-year effort launched in 2021 designed to reward energy conservation during periods when the grid is inundated with power usage.

The initiative is one of the many ways Tesla is looking to pilot programs for a sustainable future.  

Power in numbers 

As detailed on the Tesla website, the VPP program offers substantial benefits for participants and the energy sector alike, including: 

• Avoid or reduce blackouts during periods of emergency. Critical care services rely on the availability of electronic equipment when responding to crisis situations. The potential for rolling blackouts in the event of weather emergencies or unforeseen situations can be curbed or mitigated thanks to the participation of powerwall users. 

• Clean the grid. Under the terms of the initiative, Tesla will only dispatch user Powerwalls when the grid is in critical need of energy, as these periods typically burden the lesser-efficient backup generators 

• Increase visibility of sustainability efforts. Teaming with a community of like-minded and environmentally-conscious EV owners to create the largest distributed battery in the world has significant media and social media appeal. Raising awareness of sustainability-driven initiatives can bring communities together. Tesla hopes to build a community of Powerwall users who are willing to give back to the grid to over 50,000 people.  

By participating in a VPP campaign, PG&E and Tesla customers are giving back to the electrical infrastructure of California communities in need. The endeavor aims to shine a light on the importance of bi-directional participation efforts, and how they can have an outsized impact on the grid itself. 

Take part in driving change 

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