Tesla Inc. has announced that it will be partnering with Japanese companies to build an energy storage facility using its rechargeable battery in Hokkaido in Northern Japan to help stabilize the power system in the wake of rising renewable energy use.
The U.S. company will join forces with Japanese power retailer and aggregator Global Engineering and engineering firm Ene-Vision to build the energy storage facility connected to the grid with 6,095 kilowatts hour (kWh) capacity that could power about 500 homes.
Tesla will supply its megapack battery technology for the project, which is due to start functioning in summer 2022.
Global Engineering will be the operator, trading power to the wholesale electricity market, balancing market, and capacity market, while Ene-Vision will manage engineering, procurement, and construction. The project is projected to cost around 300 million yen ($2.7 million).
It aims to help further the expansion of renewable energy and to reduce costs by absorbing fluctuations and stabilizing output using generators and storage batteries.