Why This Startup Bought $125 Million In Tesla Batteries

Tesla Motors IncTSLAannounced on June 4 that it will install up to 500-megawatt hours of (MWh) of Tesla batteries in its energy storage projects. The company will operate and install Tesla's batter storage systems in commercial and industrial facilities, which will allow customer loads to be used as a virtual power plant by utilities and result in immediate savings for customers. Green Tech Media picked up the story and noted that the company has just under $7 million in venture capital backing and is making a large investment with $125 million worth of Tesla's batteries. The publication noted that it has yet to be announced how the company will finance its projects, but the company's co-founder Jackalyne Pfannenstiel said that the firm has a financing plan in place that will be disclosed in the near-term. Pfannenstiel previously served as chairman for the California Energy Commission and assistant secretary of the U.S. Navy for energy and environment issues. "We are operating on both sides of the meter, initially, as a virtual power plant for utilities, but we'll also be working with the individual customers," Pfammemste told Green Tech Media in an interview while adding that it plans to install its first 10-megawatt project for Southern California Edison in Irvine, California next year, and expects to install 200-kilowatt to 600-kilowatt blocks of batteries at individual sites. Looking forward, the executive noted that the company's roots will be planted in California, but its business is applicable throughout the country.