Wind energy giant Ørsted has selected Tesla’s Megapack as the storage system for the world’s largest offshore wind farm. The system will ensure the stability of the UK’s energy supply and reduce price volatility.
Tesla’s battery energy storage system, powered by Megapack, will be installed in Swardeston, near Norwich, Norfolk, in the eastern part of England. At the same location, Ørsted already has an onshore converter station for the Hornsea 3 offshore wind farm. Having the battery nearby minimizes disruption to those living and working nearby.
Tesla’s Megapack storage system has a capacity of 600 MWh (and a 300 MW power rating). This is equivalent to the daily energy consumption of 80,000 UK homes. When it is windy and sunny outside and electricity production exceeds demand, the battery will accumulate excess. Later, they can be discharged to balance the grid. This will reduce price volatility for consumers by allowing for more electricity. This is especially necessary during periods of peak load, when energy is traditionally more expensive. This will also help smooth out the differences between supply and demand in the country.
Investing in Tesla Megapack units is an investment in grid balancing technology. This is a natural complement to Ørsted’s offshore wind business and will provide additional services and revenue profile. The UK is one of the world’s largest markets for offshore wind and the market where Ørsted has the most offshore wind farms (12) in operation.
Once operational, the battery energy storage system will be one of the largest in Europe. It is expected to be operational by the end of 2026.
Duncan Clark, Head of UK & Ireland in Ørsted, said: “Our 12 operational UK offshore wind farms are providing a huge amount of clean energy to the grid. The battery will help ensure that renewable energy is used in the best possible way by storing it when demand is lower and then releasing it back into the system when it’s really needed, thereby maximizing the potential of renewable energy while providing increased energy security and value to consumers. With this investment, we’re adding significantly to Ørsted’s growing portfolio of storage solutions co-located with onshore and offshore renewable assets.”
Mike Snyder, Senior Director of Megapack at Tesla, said: “Tesla is excited to be part of this industry-leading project with an exceptional partner. This project demonstrates the value and flexibility of Tesla’s best-in-class power electronics, providing enhanced grid stability and enabling more renewables on the grid.”
Ørsted currently has a total of 660 MW (1,850 MWh) of energy storage projects operating or under construction in the UK and US, including the Megapack project announced today. In addition, Ørsted is developing a storage opportunity pipeline of +2 GW across the UK, Ireland, and the US.
📢We’re investing in a battery energy storage system at the same site as our #Hornsea3 Wind Farm. When it’s sunny/windy the battery will store excess energy to be discharged later to help balance the grid. @Tesla_Megapack #offshorewind 🌬️☀️👇https://t.co/wIW7GsNcYD pic.twitter.com/y5HXqg6OwH
— Ørsted (@Orsted) June 12, 2024
