Tesla is set to significantly scale its virtual power plant (VPP) operations across Japan, aiming to help stabilize the country’s power grid by deploying Powerwall home battery systems to commercial clients at no upfront cost.
Building on the success of its pilot VPP project launched in 2021 in Miyakojima, Tesla will expand its energy ecosystem nationwide through a partnership with Fuyo General Lease and Global Engineering, a Fukuoka-based energy company.
The partnership will see Powerwall batteries installed for free at offices and factories under Global Engineering’s electricity service network. Fuyo General Lease will retain ownership of the Powerwall batteries, while businesses that sign up with Global Engineering will benefit from optimized energy use and backup power in emergencies.
The first phase of the national rollout targets the installation of 100 units by the end of 2025, with initial deployments beginning in June, according to Nikkei Asia.
The Japanese government also appears to be laying the groundwork for broader VPP adoption. A new framework to enable the trading of electricity stored in home and commercial batteries is expected to launch in 2026, which could further accelerate Tesla’s growth.
With a VPP, Tesla allows Powerwall owners to charge their batteries and discharge them when electricity demand peaks. This dynamic load balancing reduces stress on the grid, enhances energy resilience, and lowers electricity costs for Powerwall owners.
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