Tesla secures 100 MW Megapack contract in New Zealand

New Zealand power company Contact Energy has announced a partnership with Tesla to construct a massive 100 MW battery storage system. The battery installation will be built in Glenbrook, near Auckland, and it is expected to cost up to NZD 163 million (USD 99.4 million). 

As noted in a report from the New Zealand Herald, the system will utilize Tesla Megapack 2 XL battery units. The battery installation is expected to have enough electricity to power 44,000 homes during peak winter demand for over two hours. Tesla will be providing commissioning and long-term maintenance services for the upcoming battery. 

Interestingly enough, Tesla and Contact Energy’s agreement also includes the option to expand the battery’s capacity to 130 MW.

Construction at the Glenbrook site is expected to begin immediately, with Contact managing the overall project. Expectations are high that the Glenbrook Megapack farm will be operational in Q1 2026. Considering that the Tesla Megapack is designed for quick deployments, such a timeframe seems more than feasible despite the size of the installation. 

Tesla’s Megapack batteries have become a quiet source of growth for the electric vehicle maker. So far, the batteries are produced at the Lathrop Megafactory in California, though the world’s supply of Megapacks is expected to improve once Tesla China completes the Shanghai Megafactory. Construction of the Shanghai Megafactory is ongoing. 

Tesla CEO Elon Musk highlighted the value of Megapacks during the first quarter earnings call. “Tesla team did a great job executing in a tough environment, and energy storage deployments of Megapack, in particular, reached an all-time high in Q1, leading to record profitability for the energy business. And that looks likely to continue to increase in the quarters and years ahead. It will increase. We actually know it will, so significantly faster than the car business as we expected,” Musk said. 

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