Tesla Secures Massive, Multi-Billion Dollar Megapack Contract

Tesla has been awarded a ridiculously huge contract to supply more than 15 gigawatt hours of Megapack to Intersect Power in California.

Megapack has become the preferred product for large-scale energy storage worldwide.

It’s Tesla’s fastest-growing product ever, and it enabled the company to deploy a record 9.4 gigawatt-hours of energy storage in the last quarter — more than double the previous record.

Now, Tesla has secured its largest Megapack contract yet, and it’s ridiculously huge.

Intersect Power today announced that it has been awarded a contract with Tesla to supply 15.3 gigawatt-hours of Megapacks over the next five years.

Intersect Power wrote in a press release:

Tesla and Intersect Power today announced a contract to supply 15.3 GWh of Megapacks, Tesla’s battery energy storage system, to Intersect Power’s solar and storage portfolio through 2030. This agreement, when combined with previous commitments, makes Intersect Power one of the largest buyers and operators of Megapacks globally with nearly 10 GWh of large-scale energy storage expected to be deployed by the end of 2027.

As we mentioned earlier, most of this capacity is expected to be deployed over the next two years, which means a significant portion of Tesla’s capacity, which currently stands at 40 gigawatt hours per year, will go to Intersect.

Intersect’s current capacity is just 2.2 GW of operational solar PV and 2.4 GWh of stored energy in operation or construction. So this is a big step for them, but they are said to have 10 GWh of projects planned over the next two years already underway.

Mike Snyder, Senior Director of Tesla Energy, commented on the new partnership with Intersect:

Intersect continues to be an exceptional partner, and its development expertise combined with the plug-and-play nature of Tesla’s vertically integrated technology enables the speed and scale needed to enhance grid resilience and support greater integration of renewables.

Sheldon Kimber, CEO of Intersect Power, added:

No one in the market can match Tesla’s deep expertise in storage technology. This partnership forms the foundation for one of the largest and fastest growing storage portfolios in the country here at Intersect Power. This storage franchise is the perfect complement to our multi-billion dollar expansion into renewable energy generation that is expected to more than triple the size of our company over the next three years.

The company confirmed that the first shipments of EMgapack under the new contract are expected to arrive next year.

Electrek’s opinion

This is a massive contract that will account for a significant portion of Tesla’s Megapack production capacity over the next few years.

We’re talking about a contract worth between $2.5 and $3.5 billion depending on pricing.

Tesla’s energy storage business is actually the bright side of the company’s recent performance, given the decline in electric vehicle deliveries and solar deployment.