Georgia Power secures $2.7 billion agreement for megapacks with Tesla, contingent on PSC authorization
Tesla Secures $2.7 Billion Contract for Georgia's Large-Scale Battery Storage Project
Tesla has secured a significant contract with Georgia Power, worth $2.7 billion, to deliver over 3 gigawatts (3,022 megawatts) of battery energy storage using its Megapack technology. The deal, pending approval from the Georgia Public Service Commission (PSC), involves the deployment of eleven energy storage facilities across eight locations in Georgia.
The key details of the deal include the use of Tesla’s 4-hour duration Megapacks, which will together provide stored energy enough to power over two million homes for four hours. The projects are expected to come online gradually between 2028 and 2030 and ensure grid reliability through at least 2031.
Plant Bowen in Bartow County and Plant Yates in Coweta County are among the key locations for these projects, with each hosting significant storage capacities. Other major planned sites include Plant Wansley in Heard County, Thomson in McDuffie County, and Wadley, which will integrate solar generation, pairing large-scale battery storage with renewable energy sources.
The new storage capacity will provide critical backup power and help balance the grid during high-demand periods. Older coal and gas units are expected to be retired, with the new battery storage playing a key role in maintaining grid stability. The construction timelines for the Georgia Power projects are designed to meet anticipated winter peak demand beginning in 2029.
Tesla expects to make over $800 million in profit from this contract, benefiting from increasing margins in its energy storage division. This contract is one of the largest Megapack deals in the U.S. and highlights Tesla’s growing role in large-scale battery storage, supporting Georgia’s transition to a cleaner and more resilient grid while preparing for increased electricity demand expected between 2029 and 2031.
This move is part of a broader trend of Tesla's involvement in the energy transition, reinforcing its role as a leader in the sector, not just electric vehicles. Tesla has been involved in other significant battery storage projects, such as Canada's largest battery storage project in Ontario, the Shanghai Megafactory producing the 1,000th Megapack, and a $557 million deal to build a grid-scale Megapack Energy Storage Station in Shanghai.
If approved, the Georgia Power projects will mark one of the most ambitious battery storage deployments in the Southeastern U.S., demonstrating Tesla's commitment to sustainable energy solutions.
The Tesla-Georgia Power partnership, involving a $2.7 billion contract, extends beyond electric vehicles into the finance sector, as the company anticipates making over $800 million in profit from this deal. This mega battery storage project, a significant player in the energy industry, will leverage technology to generate renewable energy and enhance grid stability across Georgia.
The deployment of these energy storage facilities, expected to come online by 2030, will contribute to Georgia's transition to a cleaner and more resilient grid, thereby aiding the growth of the country's renewable energy sector and finance sector, simultaneously.
