Gary Zhou 
Key Points
- 🌍 Tesla to offer Virtual Power Plant (VPP) services to Texas grid.
- 🏭 VPP program aggregates small energy devices for grid-scale services.
- 🏠 Tesla Electric customers with Powerwall batteries are participating in the initiative.
- 💰 Participants agree to sell surplus power in the ERCOT market and get compensated.
- 🔌 Two ADERs (Aggregate Distributed Energy Resource) launch the VPP initiative in Texas.
- 📈 Texas has eight ADERs in the pilot project, aiming to improve grid reliability.
- ⚡ PUCT Commissioner highlights the potential for improved grid reliability and payments for power supplied.
In a recent announcement by the Public Utility Commission of Texas (PUCT), Tesla will be providing Virtual Power Plant (VPP) services to the state’s grid. This initiative is part of the Aggregate Distributed Energy Resource (ADER) project championed by PUCT in the previous year.
With the implementation of the VPP, Texas can now explore the potential of aggregating consumer-owned small energy devices like home battery units to offer grid-scale services. Tesla has already launched similar successful programs in California and Australia.
According to PUCT’s press release, the ADER project involves Tesla Electric customers with Powerwall batteries in their homes. These participants have agreed to sell any excess power to the ERCOT market and will receive compensation for their contribution. The project encompasses Houston-area CenterPoint Energy customers and Dallas-area customers served by Oncor Electric Delivery Company.
Drew Baglino, Tesla’s Senior Vice President of Powertrain & Energy Engineering, expressed enthusiasm about the endeavor, stating, “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. Our collective efforts have enabled Tesla to establish a decentralized energy ecosystem that seamlessly integrates stored solar energy from Powerwalls onto the ERCOT grid.”
The initiation of the ADER project by Tesla Electric is just the beginning for Texas. PUCT mentioned that eight ADERs are currently participating in the pilot program, but at present, only two, both represented by Tesla Electric, have completed the necessary testing for full participation. The remaining six have completed initial registration steps and are currently in the commissioning stage.
PUCT Commissioner Will McAdams emphasized the potential of this project, stating, “Small energy resources present in homes and businesses across Texas hold tremendous potential for enhancing grid reliability and resiliency by contributing excess generated power to the ERCOT system. It’s a mutually beneficial arrangement for Texas. Home and business owners get compensated for the power they supply, and ERCOT consumers experience improved reliability.”
