Tesla Receives Approval to Build Virtual Power Plant in Texas
Tesla has been approved to begin a "statewide market design pilot" virtual power plant (VPP) in Texas. The pilot will involve Texas Powerwall owners pooling their stored energy and supplying it to the grid while getting paid for it. We've seen Tesla put a lot of effort into virtual power plants lately, as they've been pushing their VPP program and have promised to allow private energy storage battery owners to provide grid service.
Tesla launched a VPP pilot in California last year, and it has rolled out a paid version that reimburses participants $2 for every kilowatt hour of energy they contribute in most of the state. Replicating the same approach in Texas will not be simple. Tesla will have to lobby for policy changes to allow homeowners with solar and battery installations to participate in the state's energy market.
According to Arushi Sharma Frank LinkedIn, Tesla's head of U.S. marketing policy, Tesla received the green light to develop a "statewide market design pilot" policy for virtual power plants (VPP) and provide real benefits to customers who sign up for battery packs.
Currently, Tesla has launched a demonstration VPP with only 200 participants, which is now being rolled out statewide.