How can you resist the offer to become part of the largest distributed battery in the world and help keep California’s energy clean and reliable? This compelling language is part of an invitation recently offered by Tesla with the launch of its new virtual power plant in partnership with Pacific Gas and Electric Company (PG&E).
The virtual power plant will enable Powerwall owners to sign up to the program to stabilize the power grid and end outages in California. The offer to participate in the Emergency Load Reduction Program (ELRP) launched by PG&E would, according to Tesla, allow participants to support the network while also earning compensation and maintaining their energy security.
Powerwall owners who decide to join the program will earn $ 2 per kilowatt hour returned to the network.
Tesla said it has about 50,000 Powerwalls that could be eligible for this Virtual Power Station (VPP) program, which contributes a significant amount of energy capacity that can be distributed when needed on the PG&E network.
Previous iterations of virtual power plants
In 2020, Steve Hanley of CleanTechnica provides an overview of the Tesla virtual power plant program in the United Kingdom. In review, the homeowner had to meet a number of existing criteria, including owning a Tesla electric car and home charger. Then a solar power system on the roof and a Tesla Powerwall had to be added to the house. The program houses generated solar energy during peak hours, stored it and sent it back to the grid. Imports and exports of electricity were determined by software and happened automatically based on energy usage patterns, solar power generation forecasts and wholesale energy prices.
Last year, Tesla launched a virtual test power station in California, where Powerwall owners volunteered without compensation. The goal was then to pull the virtual power plant power out of the Powerwall owners’ battery packs when the network needed them.
In 2022, David Waterworth related to a study on the use of virtual power plants in Australia that indicated that the market is not quite ready for it. The returns to the participants appear to be less than they would achieve by storing their excess solar power generation in their home batteries and using it themselves overnight.
Information about the NG & E program
Stabilize California’s roster: The extra capacity that a participant’s Powerwall provides can help prevent or reduce interruptions in a severe emergency. This way, Powerwall can keep the lights on for both the participant and their community.
Clean the grid: Tesla will send out a participant’s Powerwall when the network has a critical need for additional power. This is when the least efficient generators would typically come online.
Maintain energy security: The Powerwall will discharge during VPP events, but will not discharge under the Backup Reserve.
Happenings: Tesla and PG&E will appeal to the virtual power plant when the California network operator, CAISO, issues a warning, alert or emergency in response to challenging network conditions. Tesla and PG&E may also call for opportunities at other times to reach the program of a minimum of 20 hours of opportunities. These additional events may include responses to CAISO Flex Alerts.
Before the event: When an event is scheduled, the participant will receive a push notification informing them of event times. The participant can expect their Powerwall system to prioritize loading and prepare for an event after the event is scheduled. An event can be scheduled a day in advance, but circumstances may require much less notice.
During the event: When the event begins, the participant will receive a push notification reminding them of the event’s end time, and the Powerwall will begin unloading to support the network. The Powerwall will unload until the event ends, or when it unloads to the selected Backup Reserve level. Powerwall will output a safe amount of power, which could be similar to solar power output on site. This may not be the full power capacity of the Powerwall.
After the event: Upon completion of the event, the Powerwall will resume normal operation.
Participation management: Powerwall gives the participant 3 options to control participation in VPP events: setting up the backup backup, withdrawing a single event, and resuming normal operation.
Suspend participation: Participants can switch in the Settings menu of the Tesla application to turn off participation. If this suspension occurs, the Powerwall system will not respond to events when scheduled, nor will the participant be notified of events. However, the participant is still enrolled in the program and can resume participation at any time by re-enabling participation.
Compensation: Remuneration depends on the participating energy capacity of the owner’s system, the number of Powerwalls and their backup reserve. Owners who lower their backup reserves earn more.
Payment: At the end of the season, which is typically towards the end of the year, PG&E will calculate the owner’s contribution and incentive payment from their Powerwall data. The payment is being issued by Tesla and is expected to arrive before the end of March 2023.
What information is required to enter successfully? Account number, meter number, PG&E service information and meter number location are required to enter.
Will participating in this program affect an owner’s electric bill? Tesla expects most events to occur this summer during typical peak times for many Time-of-Use tariff plans. Participation in the event will shift energy exports to periods later in the day compared to typical exports.
ELRP Terms: The ELRP begins at the entrant’s acceptance of terms and will continue until at least 31 December 2023, unless expressly extended by PG&E or terminated earlier.
ELRP Client Events: Events will be triggered the previous day or the current day, based on Flex Alerts or CAISO Energy Emergency Alerts between May 1st and October 31st. The Opportunity hours can be between 16:00 and 21:00.
Participant device data and other information: Participation in the ELRP does involve PG&E and Tesla having access to certain participant personally identifiable information and energy use data. This data set may include their name, address, power consumption, utility bill number, device information, data generated from the ELRP, and other personal information, collectively referred to as Confidential Information.
Termination: PG&E has the exclusive discretion to terminate a participant’s entry in the ELRP at any time without reason by giving the participant written notice.
General: The entire agreement exists between PG&E, Tesla and the participant regarding the ELRP admission and participation requirements.
Tesla Arbitration Requirement: A single arbitrator in a private arbitration will resolve any dispute arising out of the beta program.
The next round of the @Tesla Virtual power station with @ PGE4Me start today. Earn $ 2 per kWh sent to your network #Power wall during events such as @California_ISO warnings. #energietwitter https://t.co/5xclCRZqIV pic.twitter.com/17K65ex34W
– Alex Guichet (@AlexGuichet) 23 June 2022
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