Tesla Launches Virtual Power Plant in Japan

Tesla Japan announced on X the nationwide launch of a Virtual Power Plant (VPP), offering free Powerwall installations to eligible participants. A sign-up link is provided on Tesla Japan’s website. A VPP is similar to a conventional power plant in that it provides energy to businesses and homes. It connects many Powerwalls to form a larger power source, stabilizing the grid and supplying power to individual homes or businesses.

What are DERs?
Distributed Energy Resources (DER) combine with Tesla’s advanced software and infrastructure to aggregate energy, ensuring reliable power during blackouts.

Tesla partners with Global Engineering and Fuyo General Lease to deliver this DER aggregation service, potentially supported by Japanese government subsidies through the Long-Term Decarbonization Auction (up to 90% cost coverage for battery storage). This aligns with Elon Musk’s Master Plan 3 for global sustainable energy.

Read more

Energy Reliability from Big Batteries for Texas and Beyond

What did Elon Musk have to say about energy in an interview with Johnna Crider and Gail Alfar?

Virtual Power Plants (VPPs). A solution for reliable and less expensive power for all.

Virtual Power Plants, or VPPs, may seem small, however they are poised to take center stage in the Energy Transition.

Tesla’s Texas Virtual Power Plant ASAP

Tesla is fully prepared to step in with a smart solution to power blackouts.

Tesla’s Dedication to Customer Care and Innovation in the ADER Pilot Project

(Austin, Texas) 

In the rapidly evolving world of renewable energy and distributed resources, Tesla, Inc. has emerged as a leader in customer care and innovation through its groundbreaking participation in the ERCOT Aggregated Distributed Energy Resource (ADER) Pilot Project in the State of Texas. Over the course of just one year, Tesla has achieved remarkable milestones, showcasing its unwavering commitment to providing exceptional service to its customers and driving the transition towards a more sustainable and reliable energy grid.

The ADER Pilot Project was initiated following discussions and directives laid out in a memorandum dated July 13, 2022, in Project No. 51603. This visionary project aimed to explore the integration of distributed energy resources into the ERCOT grid, transforming them into virtual power plants (VPPs) capable of providing essential energy and reserves. Tesla, Inc. took on the challenge with gusto, and the results are nothing short of impressive.

Pioneering the Future of Energy Participation

One of the most significant accomplishments of the ADER Pilot Project is the establishment of a mechanism for controllable Distributed Energy Resources (DERs) to actively participate in ERCOT’s 5-minute dispatch. Unlike traditional demand-side response programs, Tesla’s innovation allows individual devices to act as electricity injectors or non-injectors, responding dynamically to grid conditions with the precision expected of conventional generation resources.

Tesla’s engineers developed an ADER control system that anticipates availability and influences response every five minutes. This revolutionary system takes into account the unique characteristics, constraints, and preferences of each site and device, ensuring a response that matches or exceeds the capabilities of traditional generation or storage resources.

Setting New Standards for Grid Integration

The ADER Pilot Project also achieved milestones in collaboration with distribution utilities, ensuring safe and reliable integration of DERs. Distribution utilities played a crucial role in commissioning and operating ADERs, working closely with Tesla to develop a registration and qualification process. In under a year, Tesla established a functional process to identify potential participants, validate interconnections, maintain precise customer premise information, and verify non-overlapping demand response program participation.

This work has not only facilitated the integration of ADERs into the grid but has also provided distribution utilities with unprecedented visibility into the impacts of ADERs on their systems. This level of detailed information exchange is a testament to Tesla’s dedication to transparency and cooperation in its customer care approach.

Empowering Customers through Real-time Engagement

Customer engagement and transparency have been cornerstones of Tesla’s approach to the ADER Pilot Project. Tesla Electric customers have been empowered with knowledge about ERCOT prices, energy sellback rates, and grid conditions. They understand the significance of ERCOT’s high offer cap and the role it plays as dispatchable capacity during peak periods. Tesla’s ADER pilot has enhanced customer engagement by providing real-time information through its Tesla app.

Customers are not only connected to ERCOT markets through their devices but also through the Tesla app, which offers notifications about Tesla Powerwall deployment based on ERCOT Load Zone Price. Tesla has even introduced dynamic price settings and web-based/mobile notifications, giving customers more control and awareness of their energy consumption.

Creating Innovative Customer Incentives

Innovation doesn’t stop at grid integration; Tesla has also been at the forefront of developing customer incentives. Customers participating in the ADER Pilot Project can now receive monthly bill credits reflecting their contributions to the program. These bill credits can often exceed the value created by each customer, making it a financially attractive proposition.

Tesla’s forward-looking approach aims to retain customer engagement with consistent revenue streams while creating additional incentives for peak demand periods. By continually rewarding customers for their participation, Tesla ensures a mutually beneficial relationship with its customers, aligning their interests with grid reliability.

Paving the Way for Future Participation

Tesla’s commitment to innovation extends beyond its own customer base. The company has worked to enable third-party participation in the ADER Pilot Project, recognizing the importance of expanding ADER populations to create a sustainable and meaningful impact on ERCOT.

The project has also led to the development of precise measurement and verification processes, ensuring accurate load curtailment at a device level. This level of detail is critical for maintaining grid reliability and optimizing the use of DERs.

Challenges and the Road Ahead

While Tesla has achieved remarkable success in the first year of the ADER Pilot Project, challenges remain. The company has identified the need for higher caps to make ADERs economically viable on a larger scale. Additionally, the introduction of the Dispatchable Reliability Reserve Service (DRRS) poses new considerations for ADERs’ future revenue potential. Tesla remains dedicated to addressing these challenges and ensuring the long-term viability of ADERs in the ERCOT market.

In conclusion, Tesla, Inc.’s efforts in the ADER Pilot Project exemplify its unwavering dedication to customer care and innovation. By pioneering new standards for grid integration, empowering customers through real-time engagement, creating innovative incentives, and enabling future participation, Tesla is driving the transition towards a more sustainable and reliable energy future. As the ADER Pilot Project progresses, Tesla’s commitment to customer care and innovation will undoubtedly continue to shine as a beacon of progress in the energy industry.

ADER Task force Chair Jason Ryan and Co-Chair Arushi Sharma Frank at the PUC in Austin, Texas.

References: Project No. 53911, available here:

These requirements are posted to the following webpage: https://www.ercot.com/mktrules/pilots/ader

Article by Gail Alfar, please credit accordingly.

Photo by Ana Toledo on Unsplash

Revolutionizing Puerto Rico’s Energy Landscape: A Triumph of Innovation and Progress

Castillo San Felipe del Morro, Calle Norzagaray, San Juan, Puerto Rico Publis by Zetong Li on Unsplash
Castillo San Felipe del Morro, Calle Norzagaray, San Juan, Puerto Rico by Zetong Li | Unsplash

Prepare to be amazed as Puerto Rico sets its course toward a future brimming with energy independence and sustainable growth. In a swift and impactful move, the Energy Bureau of the Public Service Regulatory Board of Puerto Rico has unleashed an era of transformation that promises to bring positive change to every doorstep on the island.

If you’re short on time but high on enthusiasm, this article is a concise breakdown of the remarkable legislative breakthrough.

Powering the Future with Clean Energy

Picture a Puerto Rico where clean energy is no longer a distant dream, but a reality that’s taking shape before our eyes. On August 11, 2023, the Energy Bureau issued a groundbreaking Order that set in motion a series of events bound to revolutionize how we harness power. This Order put into motion a process that would require LUMA Energy, LLC and LUMA Energy ServCo, LLC (collectively referred to as “LUMA”) to provide crucial information about the Emergency Demand Response (“Emergency DR”) Program.

Accelerating Renewable Energy Adoption

Fast forward to August 23, 2023, and history was made yet again. LUMA responded to the Energy Bureau’s call by submitting a Motion that detailed the costs associated with the Emergency DR Program. The plan is nothing short of ingenious: a surge in renewable energy adoption powered by solar panels on rooftops and wind farms along the coastlines. Imagine harnessing the sun’s rays and the ocean’s breezes to fuel our lives – a dream that’s now a step closer to reality.

Ensuring Resilience and Reliability

Gone are the days of power outages casting a shadow over Puerto Rico. The program’s design ensures resilience in the face of adversity. Microgrids will step in during emergencies, guaranteeing an uninterrupted power supply when the grid falters. This means quicker recovery times and stronger communities that can weather any storm.

Fostering Economic Prosperity

Hold onto your hats – the journey towards energy independence is also an economic boon! This masterstroke is projected to generate a wave of employment opportunities, boosting local economies. Skilled professionals will be at the forefront, building, operating, and maintaining the renewable energy infrastructure that’s about to change the game.

A Commitment to Communities

But it doesn’t stop at technology and economics. This visionary legislation places communities at its core. Education takes center stage, as residents will be informed about the benefits of renewable energy, fostering a deeper understanding of the world-changing shift underway.

Unveiling the Road Ahead

What’s next? Brace yourselves for the incredible journey ahead. As the Emergency DR Program unfolds, expect to see program terms issued through the PowerAdvocate platform, agreements between LUMA and participants, customer enrollment, and even a test event. The road to a sustainable future is paved with exciting milestones!

Your Role in the Revolution

It’s time to be part of the change. Join Puerto Rico on this thrilling journey towards energy independence and environmental harmony. As this historic endeavor takes flight, it’s not just about power sources; it’s about powering our lives, our communities, and our dreams.

Stay tuned for more updates on how Puerto Rico is turning a new leaf in the realm of energy. The island is poised to become a global example of innovation, resilience, and progress – a beacon of hope in a world that’s constantly evolving.

Read RESOLUTION AND ORDER | CASE NO: NEPR-Ml-2022-0001 | LUMA August 23, 2023, Motion Filing its Emergency Demand Response Program Cost and Timeline.

Photo by Ana Toledo on Unsplash
Puerto Rico by Ana Toledo on Unsplash