Tesla submits plan for Virtual Power Plant pilot in Texas

As Texas deals with a massive heatwave and potential rolling blackouts, Tesla is working with the energy regulators in the state to help the fragile grid.

Tesla has been working with the Texas Public Utility Commission and the Electric Reliability Council of Texas to get a pilot Virtual Power Plant (VPP) approved.

The hope is to allow Tesla Powerwall owners to participate in a VPP to reduce the stress on the Texas grid.

On Monday, Tesla’s US Energy Markets Policy Lead Arushi Sharma Frank participated in a workshop by the two regulatory bodies.

At the meeting, she shared Tesla’s initial principles on scope and considerations for a pilot.

Credit: @ArushiSF | Twitter

She shared updates from Monday’s meeting on Twitter.


The next meeting is scheduled for July 28, and the workshop plans to develop a memo directing the pilot process.

In addition, the workshop will set up a task force of market participants.

With the heatwave, Tesla is also going out of its way to help the grid as much as it can. Tesla is encouraging charging at off-peak times. As well, they are providing a 50 per cent incentive at Superchargers during off-peak hours.

Since the previous Texas power emergency in February 2021, Tesla has been working hard to get into the market and help.

In March of 2021, Tesla announced they are building a 100-megawatt battery storage project outside Houston. The project is online and went live earlier this year.

In May 2022, we reported that Tesla was looking to change the rules for grid operators to make it easier for residents with Powerwalls and solar power to participate in the broader market.

Tesla also recently expanded their VPP in California, adding a financial incentive in which Powerwall customers who opt-in to the program get paid $2 per kWh that is sent back to the grid to help avoid blackouts.

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