Tesla has unveiled a new program in Puerto Rico, allowing Powerwall owners to earn by supporting the local grid. This move is set to potentially establish the world’s largest virtual power plant (VPP).
The Tesla Virtual Power Plant (VPP) aims to connect distributed batteries installed in residential homes, enhancing the reliability and resilience of Puerto Rico’s grid. Participants in the Battery Emergency Demand Response Program can provide emergency grid support during critical times.
For their contribution, they will earn $1 for every kWh supplied by their Powerwall during these events. Additionally, the program offers a feature allowing users to set a VPP Backup Reserve. This ensures participants maintain a sufficient backup energy supply during outages.
The benefits of this initiative are multi-fold. The added capacity from individual Powerwalls can potentially mitigate or even avert blackouts during emergencies. This program also fosters a sense of community collaboration, as Powerwall owners in Puerto Rico can collectively contribute to building a more resilient grid.
Importantly, participants are assured of their energy security, as the Powerwall will never discharge below the set VPP Backup Reserve. Lastly, the financial incentive ensures participants are compensated for their contributions without altering their energy consumption behavior.
To qualify for the Battery Emergency Demand Response Program, Powerwall owners must meet certain criteria. They should have a residential customer’s service account registered in LUMA’s Net Energy Metering program and must ensure they are not enrolled with another Aggregator. The sign-up process is streamlined, with eligible owners able to register via the Tesla app. Once the information is reviewed and deemed eligible, they will be automatically enrolled.
Upon enrollment, participants become part of a system where the utility and Tesla will activate the VPP based on the grid’s needs. This could be based on the grid operator’s forecasts or real-time conditions. In preparation for an event, participants can expect their Powerwall system to prioritize charging.
During the event itself, the Powerwall will discharge to support the grid, and post-event, it will revert to its standard operation. The program offers flexibility, allowing participants to opt-out of individual events or even suspend their participation.
The compensation structure is straightforward. Participants receive $1 for every kWh their Powerwall delivers during an event. The total compensation depends on several factors, including the energy capacity of the system, the Powerwall’s charge level at the start of the event, and its ability to export energy during the event. Tesla will handle the compensation calculations on a quarterly basis. Once the utility provides the compensation to Tesla, it will be forwarded to the participants.
In a statement reflecting the potential of this initiative, Drew Baglino, SVP of Powertrain and Energy at Tesla, said, “Excited to be working alongside our partners @sunnovaenergy @sunrun and Powerwall customers to make this the biggest VPP in the world (potential over 300MW) and rapidly reduce the frequency and duration of grid outages in Puerto Rico.”
