Storage

Musk says Tesla “megapack” driving huge rise in battery storage deployments

Published by

Tesla CEO and co-foudner Elon Musk says the company’s energy storage division deployed record amounts of batteries in the fourth quarter of 2019, and the full year – with the new “megapack” driving a surge of interest.

The Tesla energy storage division deployed 530MWh in the fourth quarter of 2019, which is nearly three times the size of the expanded big battery at Hornsdale, which remains the biggest lithium-ion battery in the world and is being expanded to provide added service, including inertia, to the grid.

Musk says the record fourth quarter took total deployment of battery storage in 2019 to 1.65 gigawatt hours, which is more than the company has deployed in all previous years.

The last quarter included the first deployments of Megapack, the company’s new commercial- scale 3 MWh integrated storage system that is preassembled at its Nevada gigafactory as a single unit.

Before this, utility scale batteries were built with its 200kWh Powerpack units. The household market is satisfied with 13.5kWh Powerwall 2 units.

“Since the introduction of this (Megapack) product, the level of interest and orders from various global project developers and utilities has surpassed our expectations,” the company said in its Q4 earnings statement. Tesla says the Megapack takes up 40 per cent less space, requires a tenth of the parts to build, and can be assembled 10 times as fast as alternative energy storage solutions.

Apart from the original Tesla big battery at what is officially known as the Hornsdale Power Reserve, Tesla has also built big battery storage installations at Lake Bonney and Gannawarra, and smaller ones elsewhere. In California, it is building an even bigger battery, an 182.5 MW/730 MWh facility at Moss Landing for utility PG&E.

In 2020, the company says storage deployments should increase another 50 per cent, suggesting around 2.5 gigawatt hours of new battery installations this year. That will likely include the Hornsdale expansion and the Moss Landing facility, due for completion later this year.

Most of Tesla’s battery production if focused on its electric vehicles. The company proposes to hold a “battery day” – probably in April – to discuss the latest developments in the technology.

Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.

Giles Parkinson

Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.

Share
Published by

Recent Posts

This rule change could kill the market for home batteries – just when they are needed

The rationale for network pricing changes is so crazy that it threatens to stifle the…

28 April 2026

Can’t recycle solar? This local business is making millions from copper, aluminium sales

Dan Tehan set a small but growing industry offside by saying it doesn't exist, and…

28 April 2026

Diesel consumption shows the decline in coal – a specific symptom of a broader need for renewal

One of the most interesting points to emerge from the security, cost and decarbonisation issues…

28 April 2026

NZ grid operator wants more renewables and batteries to fill energy gaps caused by ageing gas and drought

New report says firmed renewables are helping to counteract declining gas supplies and ageing fossil…

28 April 2026

Stop ignoring the obvious: energy efficiency is Australia’s best diesel insurance policy

Australia, as one of the world's biggest users of diesel and its largest importer in…

28 April 2026

Reformed Safeguard Mechanism has not meaningfully cut emissions from large industrial facilities

As designed, the Safeguard Mechanism is primarily a clearinghouse for low integrity offsets. This poses…

28 April 2026