Tesla has officially signed a ¥4 billion (C$764/US$557 million) deal to build its first grid-scale battery energy storage station in China, leveraging its Megapack technology.
Capacity for global battery energy storage systems rose 42 gigawatts in 2023, nearly doubling the total increase in capacity observed in the previous year, according to the International Energy Agency. — CNBC''s Arjun Kharpal contributed reporting.
Utility-scale battery energy storage systems help electricity grids keep supply and demand in balance. They are increasingly needed to bridge the supply-demand mismatch caused by intermittent energy sources such as solar and wind.
Their growing use helps stabilize power grids, prevent outages, and reduce reliance on fossil fuels. This project is Tesla’s first large-scale energy storage installation in China, complementing its existing automotive manufacturing presence in the city through Giga Shanghai.
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