Tesla Megapack Installed In Canada, Small Utility Could Save Up To $200K Per Year

Saint John Energy, the electrical utility reseller of power in Saint John, Canada, signed a contract with Tesla to install a 1.25 MW/2.5 MWh Tesla Megapack battery to store electricity, reduce costs and greenhouse gas emissions.

“It’s kind of a pilot project but it’s a significant one. It’s a demonstration project of what the batteries can do, so we’re pretty excited to be partnered with Tesla to be doing this, because they’re a very innovative and reputable company,” said Andrew Ahearn, the utility’s manager of engineering.

According to Huddle, buying a battery is part of the federal government-sponsored Smart Energy project. According to Ahearn, the total cost of the project, which includes the design, construction, purchase of materials such as a Tesla battery and others, is $1.5 million.

Source: Saint John Energy

The battery will be able to save 1.25 MW of energy during periods of off-peak load, and then discharge it during periods of peak load.

Saint John Energy is expected to save at least $15,000 a month, Ahearn said. In general, it is estimated that Tesla Megapack could potentially save up to $200,000 a year. If the goals are achieved, then the battery will pay off in seven and a half years. He added that the battery can store enough energy to power 140 homes in the winter, and the savings will be transferred to customers.

At the end of December 2019, Saint John Energy received the Tesla 1.25 MW lithium-ion battery, the largest in Atlantic Canada. The battery will be integrated with Saint John Energy's artificial intelligence management program, which will help reduce peak monthly demand.

Source: Saint John Energy

The battery would also play a role in the Burchill Wind Project proposed for Spruce Lake Industrial Park. In cases where the wind farm cannot generate enough energy, the battery will supplement it with the accumulated clean energy

“Instead of combustion-fueled backup plants having to be fired up to meet peak demand, stored green energy can flow. It’s good for the environment AND the economy. Over time, there’s no doubt the battery will help lower power costs for consumers, ”said Bill Marshall, a power sector consultant and former Director of Strategic Planning with NB Power.

If the installation goes well, Ahearn believes the project could be launched this month.

Featured image: Saint John Energy