Tesla has deployed a Megapack, its newest and biggest energy storage system, in Canada and it could save the small electric utility up to $200,000 per year.

After a year of anticipation, Tesla launched “Megapack” last year.

It’s the company’s latest energy storage product, after the Powerpack and the Powerwall, and it is meant as an even bigger option targeting electric utility projects.

According to Tesla, a single Megapack has up to 3 MWh of storage capacity and a 1.5 MW inverter.

The company’s energy storage business has found some success with electric utility companies through the years with its Powerpack, but the competition has been offering bigger options.

Tesla was competing by simply configuring projects with a lot of Powerpacks, but now the Megapack is a new option better suited for larger projects:

Using Megapack, Tesla can deploy an emissions-free 250 MW, 1 GWh power plant in less than three months on a three-acre footprint — four times faster than a traditional fossil fuel power plant of that size. Megapack can also be DC-connected directly to solar, creating seamless renewable energy plants.

Last year, Tesla CEO Elon Musk asked utilities to buy the new Megapack to replace polluting and inefficient peaker plants and some of them have answered the call.

Saint John Energy, a small electric utility in New Brunswick, Canada, has bought a 1.25 MW / 2.5 MWh Tesla Megapack to deploy at their Millidgeville Substation. It’s likely the first in Canada.

Ryan Mitchell, VP at Saint John Energy commented:

“We’ve been making significant strides to evolve our system to a smarter grid. Leading-edge technology like the Tesla Megapack allows us to rapidly respond to dynamic changes on our system. ensuring that we can continue to offer reliable service while keeping rates stable for our customers.”

They plan to use the Tesla Megapack to do “peak shaving”, which consists of taking over some of the grid’s load during times of high electricity demand.

Andrew Ahearn, the manager of engineering for Saint John Energy, told Global News:

“During times of the month where the whole system is peaking we’ll be putting this battery on and that will actually save Saint John Energy money,” Ahearn began. “And will actually save on some greenhouse gases, as other generating plants won’t have to use their fuel as much.”

The Megapack was delivered by Tesla in December, but they plan to commission the system later this month.

Saint John Energy estimates that the Tesla Megapack is going to save them up to $200,000 per year and it could add up to $3 million in savings with a lifecycle of 15 years.

Ahearn says that they are using the system as a test and might deploy more in the future:

“The goal is to prove this technology is going to work and save on some funding and some greenhouse gases and things like that. And so if we can prove it can work then maybe we’ll purchase some more in the future.”

Tesla has only recently started to deploy the Megapack, but it has utility-scale Powerpack projects that have been around for years and already managed to make millions for its owners.

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