Tesla's batteries for businesses and utility companies (pictured here) provided energy for the big Powerwall unveiling on April 30, 2015. (Reuters)

Tesla will soon launch virtual power plants using Powerwalls in Texas and Puerto Rico under its new Tesla Electric business

As part of its ongoing expansion into the energy sector, Tesla has revealed plans to initiate virtual power plants (VPPs) in Texas and Puerto Rico, leveraging its popular Powerwall systems.

The concept of VPPs involves the aggregation of power capacity from numerous Powerwalls, enabling Tesla to offer electric grid services to utilities while rewarding homeowners for using their battery packs.

In Puerto Rico, Tesla has installed over 350 MW of Powerwalls, making it a significant presence in the region’s power landscape.

Tesla’s swift response to the 2017 hurricane that devastated the island’s electrical grid resulted in a substantial supply of Powerwalls, which are currently powering over 44,000 homes.


Elon Reeve Musk FRS is an entrepreneur and investor. He holds South African, Canadian, and U.S. citizenship and is the founder, CEO, and lead designer of SpaceX; co-founder, CEO, and product architect of Tesla, Inc.; co-founder and CEO of Neuralink; and co-founder of PayPal.

Tesla’s VPP initiative will be launched in Puerto Rico this summer, providing further support to the grid infrastructure.

Texas, having recently approved Tesla as an electricity retailer, represents another key market for Tesla’s energy division. The company plans to introduce a range of new products under its Tesla Electric brand in the state, including a forthcoming VPP.

Tesla’s Powerwalls have proven to be a critical asset during natural disasters, providing power even under severe conditions such as during Hurricane Ian, when a Powerwall continued to operate despite being submerged in 10 feet of water for several hours.

Tesla’s expansion of the VPP concept is not limited to Puerto Rico and Texas; the company has already begun holding “Virtual Power Plant” events in California, where Powerwall owners can feed solar-generated energy back to the electrical grid during peak usage times.

This initiative has been adopted in other locations like Japan, indicating Tesla’s broader vision for global implementation.

Tesla’s VPPs represent an innovative approach to power management and resilience, particularly in regions prone to natural disasters. By leveraging the distributed power storage capacity of Powerwalls, Tesla is not only contributing to grid stability but also empowering homeowners to actively participate in the energy market.

This evolution of Tesla’s energy business underscores its commitment to sustainable energy solutions and sets a promising precedent for future energy management strategies worldwide.

Derick Lila
Derick is a Clark University graduate—and Fulbright alumni with a Master's Degree in Environmental Science, and Policy. He has over a decade of solar industry research, marketing, and content strategy experience.

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