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  • Writer's pictureThe San Juan Daily Star

Tesla Energy is working to launch a virtual power plant in Puerto Rico

Drew Baglino - SVP, Powertrain and Energy Engineering - Tesla

By The Star Staff

Tesla Energy is working to launch a virtual power plant (VPP) in Puerto Rico using its Powerwalls, according to a company report, citing Senior Vice President of Energy Engineering and Powertrain Drew Baglino said.

VPPs can be used for a variety of reasons, but affordability and grid stabilization through sustainable energy are the biggest advantages, the publication, Teslarati, said. A virtual power plant (VPP) is a collection of small-scale energy resources that, aggregated together and coordinated with grid operations, can provide the same kind of reliability and economic value to the grid as traditional power plants.

Tesla has been operating its VPP program since 2021, when it launched in California, allowing owners to earn money by contributing stored energy through their Powerwalls to provide grid services. Puerto Rico is an ideal location for the program as the country routinely faces power outages and the government passed a law calling for the territory to draw all its energy from renewables by 2050.

Baglino was asked if Tesla had plans to launch a VPP in Puerto Rico where the population of Powerwalls is substantial. “We have over 350MW of Powerwalls in Puerto Rico that could help the grid shortage in Puerto Rico overnight,” Baglino stated in Teslarati. “We are working with Luma Energy Puerto Rico to activate a VPP for all Powerwall customers this summer.”

Baglino also said Tesla Electric customers in Texas will have a VPP launching there as well. It has already started testing this month and the first VPP credits will be paid out to customers next month, the report noted.

Tesla Energy is the clean energy division of Tesla, Inc. that develops, manufactures, sells and installs photovoltaic solar energy generation systems, battery energy storage products and other related products and services to residential, commercial and industrial customers.

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