A new energy storage project in California, featuring Tesla’s advanced modular battery system, has started supplying power to the grid, enhancing the state’s capacity to manage peak electricity demand.
The Condor Energy Storage Project, led by Arizona-based renewable energy developer Arevon, has officially gone online in Grand Terrace, California. This grid-scale initiative includes a 200 MW/800 MWh battery storage system comprising rows of Tesla Megapack 2 XL lithium-ion batteries. These batteries are designed to provide up to four hours of stored energy, enough to power 150,000 homes during periods of peak demand.
The deployment of the Condor project comes as California experiences a surge in battery storage capacity, providing critical support to grid operators as they manage the challenges posed by the state’s intense summer heat waves.
Tesla’s Megapack 2 XL: A Key Component
The Condor project utilizes Tesla’s Megapack 2 XL battery energy storage system (BESS), a utility-scale solution that is seeing growing demand worldwide. Tesla is ramping up production to meet this demand, with a second Megapack factory currently under construction in China, complementing its existing California facility capable of producing 10,000 units annually—equivalent to around 40 GWh of energy storage deployments.
Each Megapack 2 XL unit is configured to release energy during periods when solar and wind resources are insufficient, offering 1 MW of power and 3.9 MWh of energy storage per unit with a 93.7% round-trip efficiency. The system’s modular design allows for flexibility, accommodating both standalone and solar-plus-storage configurations.
The installation of the Condor project required 280,000 work hours, which included the construction of a new power transformer, control equipment, and an interconnection tower linking the storage system to a nearby substation. Tesla will continue to provide operations and maintenance services for the project.
Partnership with Southern California Edison
Southern California Edison (SCE) has signed a 15-year agreement to purchase capacity from the Condor project. This collaboration is expected to help SCE manage the variability associated with the increasing share of renewable energy on its grid, which accounted for 52% of its electricity sales last year. SCE’s energy storage portfolio is among the largest in the United States, with approximately 7.2 GW installed or contracted, and over 16,600 storage and solar-paired systems interconnected last year.
Expanding Battery Storage in California
The Condor project is part of a broader trend of growing battery storage capacity in California, which reached a total of 10.3 GW earlier this year. This expansion has been instrumental in maintaining grid stability during extreme weather events, such as the two-week heat wave in July. Batteries now play a crucial role in managing load during peak solar hours within the California Independent System Operator (CAISO) network.
Arevon’s commitment to renewable energy extends beyond the Condor project. The company operates nearly 2.5 GW of renewable energy projects across California, with an additional 1.2 GW under construction. Arevon has also secured agreements for two upcoming standalone BESS projects: Cormorant Energy Storage (250 MW/1 GWh), set to begin construction next year, and Avocet (200 MW/800 MWh), scheduled to be operational by mid-2026.
Additionally, Arevon is working on hybrid projects in California. Eland 2 Solar-Plus-Storage, expected to launch in early 2025, will combine 374 MW of solar power with 150 MW/600 MWh of storage using Megapack 2 XL units. Later this year, the company will also begin operating the Vikings Solar-Plus-Storage project, a large-scale solar peaker plant featuring 157 MW of First Solar modules and 150 MW/600 MWh of storage from Megapack batteries.
These initiatives underscore the ongoing transformation of California’s energy landscape, with advanced battery storage systems like Tesla’s Megapack playing a pivotal role in ensuring a reliable, renewable-powered future.