Tokyo, Aug 30 (IANS): Electric car maker Tesla is quietly developing a virtual power plant in Japan as it has revealed that since 2021, it has been quietly installing its Powerwall batteries at residences on the Japanese island of Miyako-jima.

Till now, the company said it has installed over 300 units of Powerwall batteries and expects to install 100 more by year-end.

"This is the first commercial use of Powerwall for a VPP project in Japan, and it will be the largest commercial VPP using household storage batteries in Japan," the company said in a statement.

This project is based on the "solar panel + storage battery installation service", which allows users to install a solar power generation system and a storage battery with zero initial installation cost.

"In addition, Powerwall installation will be carried out by Nextems Co., Ltd., a Tesla Powerwall certified sales and construction company, and Powerwall aggregation and utilization as a VPP will also be carried out by Nextems," the company said.

Powerwall aggregation uses Tesla software to control optimal charging and discharging in bulk.

As a result, for example, when power supply and demand are tight on Miyako Island, electricity generated by photovoltaic power generation is stored in Powerwall before the tight time period and discharged from Powerwall to the home during the tight time period.

It contributes not only to the households where it is installed but also to the stabilisation of Miyako Island's grid power supply, making it possible to stabilize the power supply on the island.

In addition, in the event of a power outage due to a typhoon, etc., power will be supplied to the home where the Powerwall is installed, making it possible to prevent power outages in the home.