Texas is launching a pilot program for a “virtual power plant” that will incentivize Tesla Powerwall owners to use their home battery packs to support the grid. The Electric Reliability Council of Texas (ERCOT), which manages the state’s electricity grid, was directed to develop this pilot program in 2022 by the Public Utility Commission of Texas (PUCT). Tesla Powerwall owners in two regions have agreed to sell surplus power to ERCOT’s market under the pilot program. This initiative aims to integrate stored solar energy from Powerwalls onto the ERCOT grid and help improve grid reliability.
The pilot program is divided into two Aggregated Distributed Energy Resource (ADER) regions, each equipped with enough Powerwall units for at least 100 kW of power generation. One ADER is based in the Houston area under utility CenterPoint Energy, and the other is centered around Dallas-area Powerwall users served by Oncor Electric Delivery Company. Participation is voluntary, and the specific requirements and compensation details are determined by the utilities.
The PUCT estimates that the average residential battery contribution in these pilot regions will be approximately 5 kW, considering that current Tesla Powerwall units have a capacity of up to 13.5 kW.
While Texas is not the first state to launch such a program, it highlights the increasing interest in virtual power plants and the role of residential battery systems in grid management. California’s Pacific Gas & Electric (PG&E), for example, used Tesla Powerwalls as a virtual power plant last year as part of various bidirectional EV charging pilot programs. Bidirectional charging allows EVs to provide power to the grid, potentially reducing the need for traditional “peaker” power plants.
In the future, this type of technology could play a significant role in balancing grid supply and demand and enhancing grid resilience. Some automakers, including GM and Ford, are building bidirectional charging capabilities into their EVs to provide home emergency backup power and support grid management. However, the Nissan Leaf is currently one of the few EVs that allow manufacturer-approved grid interfacing.