Tesla rolls out Virtual Power Plant to SDG&E customers in San Diego
Tesla’s Virtual Power Plant program, a way for Powerwall owners to make money selling energy to the grid in times of need, is rolling out to San Diego Gas & Electric utility customers now.
SDG&E announced late last month the start of its own virtual power plant (VPP) program which would leverage household backup batteries and smart devices to reduce demand and increase supply of electricity to the grid during “demand response” events – when the grid is stressed and needs to spin up extra capacity to keep the lights on.
However, Tesla’s program is separate from SDG&E’s, even though it’s part of the same service area.
Demand response events are often expensive, because the price of a blackout is high, and the price of marginal electricity generation (often via gas peaker plants) is costly both economically and environmentally. During last year’s record heat wave, the wholesale spot price of electricity got as high as ~$2,000/MWh in parts of the state (as of the writing of this article, the price is currently ~$49/MWh).
A home or business with access to energy storage might want to leverage that storage by buying electricity while it’s cheap, and then discharging it to the grid while it’s very expensive. While this is possible on a home-to-home basis by arbitraging cheap off-peak energy and using it during on-peak times, it isn’t really great for widespread grid events unless several home storage systems can be joined together.
What does a Virtual Power Plant do?
Enter the VPP, which combines thousands of internet connected devices across a wide area and manages them all together in order to make a significant difference on the grid in times of need.
SDG&E has been running its own pilot VPP program since December, which has been tested 17 times. Participants get a message that a demand response event is coming and can choose to opt-out for certain devices (for example, to keep their air conditioning running at full blast). SDG&E says that the opt-out rate has been very low so far, suggesting that participants are happy to do their part when the grid is in need.
We saw similar behavior statewide in California last year when the grid faced its highest level of demand ever recorded on an exceptionally hot day. California’s grid operator sent out a text message to everyone in the state asking them to conserve energy, and Californians reduced their energy use by multiple gigawatts in mere minutes, thus saving the grid from overloading statewide.
But with a virtual power plant, participation doesn’t need to be voluntary, it can be automatic (for those who have signed up). And in exchange for the valuable benefit of helping to avoid blackouts by adding electricity to the grid when it is most expensive, VPP participants can be paid for their service.
We’ve already seen this happening with one of the largest and earliest VPPs out there, Tesla’s VPP in Northern California, in the service area of Pacific Gas & Electric. We saw participants receive checks of up to $575 for their first year of participation in the program.
Growth of Tesla VPP as it expands to San Diego
Tesla’s VPP program has been growing. Last time we checked in last year, it was capable of providing 50 MW across California, which is about as much as one average gas peaker plant (the state has about 7GW of gas peaker capacity total). This was right after Tesla opened up the program to SoCal Edison customers.
As of now, the site we were using to track growth has changed its measurements a little, but it looks like the system can provide ~116MWh of potential backup energy – so as much as running two gas peaker plants for an hour or so.
And as of now, Tesla Powerwall owners in San Diego can join the Virtual Power Plant program by enrolling through the same Tesla app which they use to manage their Powerwall.
All owners need to do is open up their app to the Powerwall page and tap on the “Virtual Power Plant” item, which should be at the top of the list, as seen below:
Tesla will provide an estimate of how much you can earn by participating in the program, based on the size of your system and your standard usage. Of course this is just an estimate, and you can always change your settings or usage to try to maximize this number, especially on days where demand response events are likely (e.g., hot days in California, which tend to stress the grid the most due to overuse of air conditioning).
In addition to California’s struggles with hot weather events (which are worsening due to climate change), SDG&E has rather wide time-of-use rates, with super off-peak rates of 24 cents per kWh, raising as high as 70-80 cents during on-peak times. This makes Powerwalls more attractive due to the possibility of energy arbitrage – and even more attractive during demand response events, where effective wholesale rates can go much higher than that.
Tesla also is also working on rolling out VPPs to Texas and Puerto Rico, and has another massive VPP in South Australia, an area which has been struggling with electricity issues for years now.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the new Tesla Model S/X “refresh”, robotaxi service is coming, a new EV price war in China, and more.
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Kia’s electric SUV has already become a hit in several overseas markets. The EV5 is now arriving as the first electric Kia to be assembled in Singapore, as it rolls out to new global markets.
Kia EV5 arrives as its first locally made EV in Singapore
Shortly after its introduction at the 2023 Chengdu Motor Show, Kia launched the EV5 in China, with prices starting at about 20,000 (149,800 yuan).
Kia is now seeing a full-on recovery in China, largely thanks to the new electric SUV. Its joint venture partner in China, Yueda Kia, ranked first in sales growth among JV brands.
In China, Kia sold over 248,000 vehicles last year, the first time it has crossed the 200,000 mark since 2020. The EV5 is made at Yueda Kia’s manufacturing plant in China and exported to overseas markets like Australia and Thailand.
In fact, the EV5 is currently the fourth best-selling EV in Australia this year through April, ahead of every BYD vehicle.
The EV5 is slightly smaller than the Tesla Model Y at 4,615 mm in length, 1,875 mm in width, and 1,715 mm in height.
After launching the EV5 in Singapore on May 28, Kia hit a milestone. The electric SUV arrives as Kia’s first locally assembled EV in the region.
The EV5 was officially launched during an event at Hyundai Motor Innovation Groupe Centre Singapore, where it will be made. It will join other Hyundai Motor electric cars, including the IONIQ 5 and IONIQ 6. Hyundai also builds the IONIQ 5 robotaxi here and exports it to the US.
Kia’s distributor, Cycle and Carriage, will sell the EV5 in three variants: Air, Earth, and a sporty GT-line. Two battery sizes will be available, 64.2 kWh and 88.1 kWh, providing range of 400 km and 540 km, respectively.
Prices for the base Air trim start at $194,000 (SDG), including COE. The Earth and GT-Line models start at $210,500 (SDG) and $260,000 (SDG) with COE.
Later this year, Kia will launch the global version of the EV5, which will be made at its Autoland Gwangju manufacturing plant in South Korea. It will be sold in overseas markets, including Europe and Canada, but not the US.
Kia confirmed the EV5 will be “exclusively for the Canadian market” in North America. It will be available in FWD and AWD powertrains. Two battery sizes will be offered: 60.3 kWh or 81.4 kWh, providing a range of up to 500 km (310 miles).
Source: Cycle & Carriage Kia Pte Ltd, The Straits Times
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Do we smell a three-peat? The team at Ford Performance is once again competing at the annual Pikes Peak International Hill Climb, and this year is bringing a “Super” version of the all-electric Mustang Mach-E… At least we think there’s a Mach-E in there somewhere.
Pikes Peak—the “Race to the Clouds.” This annual event spanning 12.42 miles to an elevation of over 14,000 feet in the mountains above Colorado has been celebrated for over 100 years. While its hill climb is rooted in tradition and traditional vehicles, it has become an annual opportunity for EV engineers to showcase how much better all-electric models can be.
Last year, Rivian, Hyundai, and Ford Performance all impressed, with the former two automakers snagging records for their vehicle types, while Ford’s “F-150 Supertruck” took the “King of the Mountain” crown for the fastest climb of the day.
This past January, we learned that Ford Performance planned to defend its title at Pikes Peak with its third all-electric demonstrator in as many years. At the time, we only saw a sheeted vehicle that appeared to be relatively low with a massive spoiler, but the glowing front emblem left no doubt that it was a modified version of the Mustang Mach-E.
Today, Ford Performance unveiled the BEV it will use to climb Pikes Peak, which it is calling the Super Mustang Mach-E. Have a gander.
Super Mach-E will try to hold Ford’s Pikes Peak crown
Ford Performance shared the images seen above in an Instagram post with the following caption:
12 miles of mountain road. 156 turns. 14,115 feet of elevation. This is the @pikespeakhillclimb, and we’re bringing 6,125 lbs of downforce — and @romaindumas_official — to take it on with the Super Mustang Mach-E.
From the post, we’ve learned the Super Mustang Mach-E will be driven up Pikes Peak by none other than veteran French racer Romain Dumas. Dumas has a wealth of experience in some of the world’s largest (and longest) races, including the 24 Hours of Le Mans, Nürburgring 24 Hours, and the 24 Hours of Daytona.
He has been contracted to Ford Performance since 2022 and has won two of his five Hill Climb victories with the American automaker in the past two years (although the 2023 SuperVan victory was in the division and second overall). Could Dumas tally his sixth career victory at Pike Peak with a three-peat with Ford in the Super Mustang Mach-E?
Ford Performance and Romain Dumas have shown they can do it, so it’s a serious possibility. We will find out on June 22, 2025, when the 103rd running of the Pikes Peak International Hill Climb takes place.
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