Tesla is reportedly building a 100-megawatt battery in Texas following the recent problems that led to massive and sustained power outages that affected millions of residents of the lone-star state. Since the electric grid in Texas doesn’t have the same interstate agreements and interconnectedness that many other states have, getting power outside the problem areas was difficult. Tesla’s utility-scale battery could help prevent some of these issues in the future.

Tesla is most known for its electric cars, but the company also offers solar panels and somewhat unique roof tiles that double as solar collectors. To make the most use of solar energy, a high-capacity battery is needed and Tesla offers its Powerwall solution for residential and commercial use. Each Powerwall battery can store 13.5 kilowatt-hours of energy and multiple units can be used to match the house size and energy needs. This means the homeowner doesn’t have to feed excess solar energy to the electrical grid, rather storing it in the in-home battery for later use when the sun goes down. These Tesla batteries can also be used without solar panels to store grid power as a backup power system or to store energy in off-hours when the cost of electricity is lower for use during a high-demand period when costs are higher.

Related: Tesla Powerwall: How Much It Costs & Is It Worth It Explained

As reported by Bloomberg, Tesla is in progress on a 100-megawatt battery in Angleton, Texas, which is located about 40 miles south of Houston. Similar to the Powerwall, but with much higher capacity, this utility-scale energy storage system will be able to power about 20,000 homes by itself. Bloomberg found out that the project is being handled by Gambit Energy Storage LLC, a subsidiary of Tesla. Overhead photos of the construction site reveal several rows and columns of battery banks. Tesla has not commented on this yet, but the photos show that work is well underway. Tesla CEO Elon Musk has recently moved to Texas, following a trend of several tech leaders leaving Silicon Valley.

How Tesla Battery Storage Helps

Tesla MegaPack Construction In Texas Via Bloomberg

Just as each residential Powerwall can charge from the grid and supply power during power outages, a utility-scale battery system can do the same but for thousands of homes. Such a system is in use in Australia and reports are very positive and enthusiastic. Called the Hornsdale Power Reserve, it has a capacity of 150-megawatts and has been in operation since 2017. Tesla’s systems provide several levels of security to electrical grids and providing power in the event of an outage is just one of them. These battery reserves can be set up with fast switching that smooths temporary power blips, so the loss of power may not even be noticed. Businesses that have critical computer needs have used small uninterruptible power supplies (UPS) for many years now and while not the same technology, the effect is essentially the same.

Utility-scale battery reserves also allow storing power in off-hours, when less electricity is drawn by residents and businesses, so renewable power such as that provided by solar panels, wind turbines and other systems won’t be wasted. Then when demand increases during a hot day or a cold night, the battery grid can feed it back to the system easing the need to burn fossil fuels in order to generate electricity. To be clear, the Tesla battery storage facility likely won't generate energy, but will help to smooth out the supply, storage and release as needed, quickly and efficiently. Naturally, this will need cooperation with local utility companies and the government, but presumably, Tesla is either working on this or already has approval. The name of the subsidiary, Gambit, may imply a bit of risk is involved, but more details will likely be revealed whenever Tesla makes a formal announcement about the project.

Next: Elon Musk & SpaceX Plan On Drilling For Natural Gas In Texas

Source: Bloomberg