Massachusetts Issues Energy Storage Solicitation Offering $10M


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Massachusetts Energy Storage Solicitation offers grants and matching funds via MassCEC and DOER for grid-connected, behind-the-meter projects, utility partners, and innovative business models, targeting 600 MW, clean energy leadership, and ratepayer savings.

 

Key Points

MassCEC and DOER matching-fund program for grid-connected storage pilots, advancing innovation and ratepayer savings.

✅ $100k-$1.25M matching funds; 50% cost share required

✅ Grid-connected, utility-partnered and behind-the-meter eligible

✅ 10-15 awards; proposals due June 9; install within 18 months

 

Massachusetts released a much-awaited energy storage solicitation on Thursday offering up to $10 million for new projects.

Issued by the Massachusetts Clean Energy Center (MassCEC) and the Department of Energy Resources (DOER), the solicitation makes available $100,000 to $1.25 million in matching funds for each chosen project.

The solicitation springs from a state report issued last year that found Massachusetts could save electricity ratepayers $800 million by incorporating 600 MW of energy storage projects. The state plans to set a specific energy storage goal, now the subject of a separate proceeding before the DOER.

The state is offering money for projects that showcase examples of future storage deployment, help to grow the state’s energy storage economy, and contribute to the state’s clean energy innovation leadership.

MassCEC anticipates making about 10-15 awards. Applicants must supply at least 50 percent of total project cost.

The state is offering money for projects that showcase examples of future storage deployment, help to grow the state’s energy storage economy, and contribute to the state’s clean energy innovation leadership.

MassCEC anticipates making about 10-15 awards. Applicants must supply at least 50 percent of total project cost.

The state plans to allot about half of the money from the energy storage solicitation to projects that include utility partners. Both distribution scale and behind-the-meter projects, including net-zero buildings among others, will be considered, but must be grid connected.

The solicitation seeks innovative business models that showcase the commercial value of energy storage in light of the specific local energy challenges and opportunities in Massachusetts.

Projects also should demonstrate multiple benefits/value streams to ratepayers, the local utility, or wholesale market.

And finally, projects should help uncover market and regulatory issues as well as monetization and financing barriers.

The state anticipates teams forming to apply for the grants. Teams may include public and private entities and are are encouraged to include the local utility.

Proposals are due June 9. The state expects to notify winners September 8, with contracts issued within the following month. Projects must be installed within 18 months of receiving contracts.

 

 

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Alberta renewable energy surge could power 4,500 jobs

Alberta Renewable Energy Boom highlights corporate investments, power purchase agreements, wind and solar capacity gains, grid decarbonization, and job growth, adding 2 GW and $3.7B construction since 2019 in an open electricity market.

 

Key Points

Alberta's PPA-driven wind and solar surge adds 2 GW, cuts grid emissions, creates jobs, and accelerates private builds.

✅ 2 GW added since 2019 via corporate PPAs

✅ Open electricity market enables direct deals

✅ Strong wind and solar resources boost output

 

Alberta has seen a massive increase in corporate investment in renewable energy since 2019, and capacity from those deals is set to increase output by two gigawatts —  enough to power roughly 1.5 million homes. 

“Our analysis shows $3.7 billion worth of renewables construction by 2023 and 4,500 jobs,” Nagwan Al-Guneid, the director of Business Renewables Centre Canada, says. 

The centre is an initiative of the environmental think tank Pembina Institute and provides education and guidance for companies looking to invest in renewable energy or energy offsets across Canada. Its membership is made up of renewable energy companies.

The addition of two gigawatts is over two times the amount of renewable energy added to the grid between 2010 and 2017, according to the Canadian Energy Regulator. 

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“This is driven directly by what we call power purchase agreements,” Al-Guneid says. “We have companies from across the country coming to Alberta.”

So far this year, 191 megawatts of renewable energy will be added through purchase agreements, according to the Business Renewables Centre, as diversified energy sources can make better projects overall.

Alberta’s electricity system is unique in Canada — an open market where companies can ink deals directly with private power producers to sell renewable energy and buy a set amount of electricity produced each year, either for use or for offset credits. The financial security provided by those contracts helps producers build out more renewable projects without market risks. Purchasers get cheap renewable energy or credits to meet internal or external emissions goals. 

It differs from other provinces, many of which rely on large hydro capacity and where there is a monopoly, often government-owned, on power supply. 

In those provinces, investment in renewables largely depends on whether the company with the monopoly is in a buying mood, says Blake Shaffer, an economics professor at the University of Calgary who studies electricity markets. 

That’s not the case in Alberta, where the only real regulatory hurdle is applying to connect a project to the grid.

“Once that’s approved, you can just go ahead and build it, and you can sell it,” Shaffer says.

That sort of flexibility has attracted some big investments, including two deals with Amazon in 2021 to purchase 455 megawatts worth of solar power from Calgary-based Greengate Power. There are also big investments from oil companies looking to offset emissions.

The investments are allowing Alberta to decarbonize its grid, largely with the backing of the private sector. 

Shaffer says Alberta is the “renewables capital in Canada,” a powerhouse in both green and fossil energy by many measures.

“That just shocks people because of course their association with Alberta is nothing about renewables, but oil and gas,” Shaffer says. “But it really is the investment centre for renewables in the entire country right now.”

Alberta has ‘embarrassing’ riches in wind energy and solar power
It’s not just the market that is driving Alberta’s renewables boom. According to Shaffer there are three other key factors: an embarrassment of wind and solar riches, the need to transition away from a traditionally dirty, coal-reliant grid and the current high costs of energy. 

Shaffer says the strong and seemingly non-stop winds coming off the foothills of the Rockies in the southwest of the province mean wind power is increasingly competitive and each turbine produces more energy compared to other areas. The same is true for solar, with an abundance of sunny days.

“Southern Alberta and southern Saskatchewan have the best solar insolation,” he says. “You put a panel in Vancouver, or you put a panel in Medicine Hat, and you’re gonna get about 50 per cent more energy out of that panel in Medicine Hat, and they’re gonna cost you the same.”

The spark that set off the surge in investments wasn’t strictly an open-market mechanism. Under the previous NDP government, the province brought in a program that allowed private producers to compete for government contracts, with some solar facilities contracted below natural gas demonstrating cost advantages.

The government agreed to a certain price and the producers were then allowed to sell their electricity on the open market. If the price dropped below what was guaranteed, the province would pay the difference. If, however, the price was higher, the developers would pay the difference to the government. 

 

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Electric vehicle owners can get paid to sell electricity back to the grid

Ontario EV V2G Pilots enable bi-directional charging, backup power, and grid services with IESO, Toronto Hydro, and Hydro One, linking energy storage, solar, blockchain apps, and demand response incentives for smarter electrification.

 

Key Points

Ontario EV V2G pilots test bidirectional charging and backup power to support grid services with apps and incentives.

✅ Tests Nissan Leaf V2H backup with Hydro One and Peak Power.

✅ Integrates solar, storage, blockchain apps via Sky Energy and partners.

✅ Pilots demand response apps in Toronto and Waterloo utilities.

 

Electric vehicle owners in Ontario may one day be able to use the electricity in their EVs instead of loud diesel or gas generators to provide emergency power during blackouts. They could potentially also sell back energy to the grid when needed. Both are key areas of focus for new pilot projects announced this week by Ontario’s electricity grid operator and partners that include Toronto Hydro and Ontario Hydro.

Three projects announced this week will test the bi-directional power capabilities of current EVs and the grid, all partially funded by the Independent Electricity System Operator (IESO) of Ontario, with their announcement in Toronto also attended by Ontario Energy Minister Todd Smith.

The first project is with Hydro One Networks and Peak Power, which will use up to 10 privately owned Nissan Leafs to test what is needed technically to support owners using their cars for vehicle-to-building charging during power outages. It will also study what type of financial incentives will convince EV owners to provide backup power for other users, and therefore the grid.

A second pilot program with solar specialist Sky Energy and engineering firm Hero Energy will study EVs, energy storage, and solar panels to further examine how consumers with potentially more power to offer the grid could do it securely, in part using blockchain technology. York University and Volta Research are other partners in the program, which has already produced an app that can help drivers choose when and how much power to provide the grid — if any.

The third program is with local utilities in Toronto and Waterloo, Ont., and will test a secure digital app that helps EV drivers see the current demands on the grid through improved grid coordination mechanisms, and potentially price an incentive to EV drivers not to charge their vehicles for a few hours. Drivers could also be actively further paid to provide some of the charge currently in their vehicle back to the grid.

It all adds up to $2.7 million in program funding from IESO ($1.1 million) and the associated partners.

“An EV charged in Ontario produces roughly three per cent of emissions of a gas fuelled car,” said IESO’s Carla Nell, vice-president of corporate relations and innovation at the announcement near Peak Power chargers in downtown Toronto. “We know that Ontario consumers are buying EVs, and expected to increase tenfold — so we have to support electrification.”

If these types of programs sound familiar, it may be because utilities in Ontario have been testing such vehicle-to-grid technologies soon after affordable EVs became available in the fall of 2011. One such program was run by PowerStream, now the called Alectra, and headed by Neetika Sathe, who is now Alectra’s vice-president of its Green Energy and Technology (GRE&T) Centre in Guelph, Ont.

The difference between now and those tests in the mid-2010s is that the upcoming wave of EV sales can be clearly seen on the horizon, and California's grid stability work shows how EVs can play a larger role.

“We can see the tsunami now,” she said, noting that cost parity between EVs and gas vehicles is likely four or five years away — without government incentives, she stressed. “Now it’s not a question of if, it’s a question of when — and that when has received much more clarity on it.”

Sathe sees a benefit in studying all these types of bi-directional power-flowing scenarios, but notes that they are future scenarios for years in the future, especially since bi-directional charging equipment — and the vehicles with this capability — are pricey, and largely still not here. What she believes is much closer is the ability to automatically communicate what the grid needs with EV drivers, as Nova Scotia Power pilots integration, and how they could possibly help. For a price, of course.

“If I can set up a system that says ‘oh, the grid is stressed, can you not charge for the next two hours? And here’s what we’ll offer to you for that,’ that’s closer to low-hanging fruit,” she said, noting that Alectra is currently testing out such systems. “Think of it the same way as offering your car for Uber, or a room on Airbnb.”

 

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Canada and British Columbia invest in green energy solutions

British Columbia Green Infrastructure Funding expands CleanBC Communities Fund projects, from EV charging stations to sewage heat recovery, delivering low-carbon heat in Vancouver and supporting Indigenous communities and COVID-19 recovery through the Green Infrastructure Stream.

 

Key Points

A joint federal-provincial program backing CleanBC to fund EV chargers, sewage heat recovery, and low-carbon heat.

✅ Funds EV charging across Vancouver Island and northern B.C.

✅ Expands sewage heat recovery via Vancouver's NEU

✅ Joint federal, provincial, local, and Indigenous partners

 

The governments of Canada and British Columbia are investing in infrastructure to get projects under way that meet people's needs, address the effects of the COVID-19 pandemic, and help communities restart their economies.  

Strategic investments in green infrastructure are key to creating clean healthy communities, making life more affordable, and building a clean electricity future for Canada.

Today, the Honourable Jonathan Wilkinson, Minister of Environment and Climate Change and Member of Parliament for North Vancouver, on behalf of the Honourable Catherine McKenna, Minister of Infrastructure and Communities, and the Honourable George Heyman, B.C. Minister of Environment and Climate Change Strategy, announced funding for 11 projects, alongside initiatives like the province's hydrogen project, to help B.C. communities save energy and reduce pollution.  

In Vancouver, the Sewage Heat Recovery Expansion Project will increase the capacity of the Neighbourhood Energy Utility (NEU) to provide buildings in the False Creek area with low-carbon heat and hot water. The NEU recycles waste heat and uses a mix of renewable and conventional natural gas to reduce harmful emissions.

Funding is also going towards expanding the network of Level-2 electric vehicle (EV) charging stations across the province. More than 80 new stations will be installed in communities across mid-Vancouver Island, as well as northern and central B.C., making clean transportation options, supported by incentives for zero-emission vehicles, more viable for more people.

These, along with the other projects announced today, will create jobs and strengthen local economies now while promoting sustainable growth and residents' long-term health and well-being.

The Government of Canada is investing more than $28.5 million in these projects through the Green Infrastructure Stream (GIS) of the Investing in Canada plan, and local and Indigenous communities are contributing more than $13 million. The Government of British Columbia is contributing nearly $18 million through the CleanBC Communities Fund, part of the federal Investing in Canada plan's Green Infrastructure Stream, which also supports rebates for home and workplace charging initiatives.

Quotes

"Expanding electric vehicle charging stations across Vancouver Island will make clean transportation more viable for more people. Encouraging green energy solutions like this is essential to building strong resilient communities. Canada's Infrastructure plan invests in thousands of projects, creates jobs across the country, and builds stronger communities."

The Honourable Jonathan Wilkinson, Minister of Environment and Climate Change and Member of Parliament for North Vancouver, on behalf of the Honourable Catherine McKenna, Minister of Infrastructure and Communities

"This investment through the Green Infrastructure Stream is a great example of how federal partnerships with all levels of government can ensure a sustainable future for generations. Amidst COVID-19, we can rebuild better with a green recovery."

Hedy Fry, Member of Parliament for Vancouver Centre

"People deserve access to clean air, clean energy and clean economic opportunities and by investing in new clean infrastructure projects, we will reduce pollution, build better buildings, improve transportation options with EV charger rebates and make life more affordable for people. By working together with the City of Vancouver and other B.C. communities, along with the federal government, we're helping build back a stronger, better B.C. for everyone following the impacts of COVID-19 through our CleanBC plan."

The Honourable George Heyman, Minister of Environment and Climate Change Strategy Government

"This is an important investment when it comes to addressing the climate emergency our city is facing. Nearly 60 per cent of carbon pollution created in Vancouver comes from burning natural gas to heat our buildings and provide hot water. This investment from our provincial and federal partners will help us greatly expand the Neighbourhood Energy Utility to reduce our carbon footprint even further."

His Worship, Kennedy Stewart, Mayor of Vancouver

Quick facts

Through the Investing in Canada Plan, the Government of Canada is investing more than $180 billion over 12 years in public transit projects, green infrastructure, social infrastructure, trade and transportation routes, and Canada's rural and northern communities.
The Government of Canada has invested $4.2 billion in 525 infrastructure projects across British Columbia under the Investing in Canada plan.
To support Canadians and communities during the COVID-19 pandemic, a new stream has been added to the over $33-billion Investing in Canada Infrastructure Program to help fund pandemic-resilient infrastructure. Existing program streams have also been adapted to include more eligible project categories.
The new Canada Healthy Communities Initiative will provide up to $31 million in existing federal funding to support communities as they deploy innovative ways to adapt spaces and services to respond to immediate and ongoing needs arising from COVID-19 over the next two years.
The 11 projects are part of the first intake of the CleanBC Communities Fund, which committed more than $63 million in joint federal-provincial funding. Additional projects from the first intake will be announced soon.
The second intake for the CleanBC Communities Fund is now open for applications from local governments, Indigenous groups, not-for-profits and for-profit organizations in B.C.

 

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Biden's Climate Law Is Working, and Not Working

Inflation Reduction Act Clean Energy drives EV adoption and renewable power, but grid interconnection, permitting, and supply chain bottlenecks slow wind, solar, and offshore projects, risking emissions targets despite domestic manufacturing growth and tax incentives.

 

Key Points

An IRA push to scale EVs and renewables, meeting EV goals but lagging wind and solar amid grid and permitting delays.

✅ EV sales up 50%, 9.2% of 2023 new cars; growth may moderate.

✅ 32.3 GW added, below 46-79 GW/year needed for climate targets.

✅ Grid, permitting, and supply chain delays bottleneck wind and solar.

 

A year and a half following President Biden's enactment of an ambitious climate change bill, the landscape of the United States' clean energy transition, shaped by 2021 electricity lessons, presents a mix of successes and challenges. A recent study by a consortium of research organizations highlights that while electric vehicle (EV) sales have surged, aligning with the law's projections, the expansion of renewable energy sources like wind and solar has encountered significant hurdles.

The legislation, known as the Inflation Reduction Act, aimed for a dual thrust in America's climate strategy: boosting EV adoption, alongside EPA emission limits, and significantly increasing the generation of electricity from renewable resources. The Act, passed in 2022, was anticipated to propel the United States toward reducing its greenhouse gas emissions by approximately 40 percent from 2005 levels by the end of this decade, backed by extensive financial incentives for clean energy advancements.

Electric vehicle sales have indeed seen a remarkable uptick, with a more than 50 percent increase over the past year, as EV sales surge into 2024 across the market, culminating in EVs comprising 9.2 percent of all new car sales in the United States in 2023. This growth trajectory met the upper range of analysts' predictions post-law enactment, signaling a strong start toward achieving the Act's emission reduction targets.

However, the EV market faces uncertainties regarding the sustainability of this rapid growth. The initial surge in sales was largely driven by early adopters, and the market now confronts challenges such as high prices and limited charging infrastructure, while EVs still trail gas cars in overall market share. Despite these concerns, projections suggest that even a slowdown to 30-40 percent growth in EV sales for 2024 would align with the law's emission goals.

The renewable energy sector's progress is less straightforward. Despite achieving a record addition of 32.3 gigawatts of clean electricity capacity in the past year, the pace falls short of the projected 46 to 79 gigawatts needed annually to meet the United States' climate objectives. While there is potential for about 60 gigawatts of projects in the pipeline for this year, not all are expected to materialize on schedule, indicating a lag in the deployment of new renewable energy sources.

Logistical challenges are a significant barrier to scaling up renewable energy, especially as EV-driven electricity demand rises in the coming years. Lengthy grid connection processes, permitting delays, and local opposition hinder wind and solar project developments. Moreover, ambitious plans for offshore wind farms are hampered by supply chain issues and regulatory constraints.

To achieve the Inflation Reduction Act's ambitious targets, the United States needs to add 70 to 126 gigawatts of renewable capacity annually from 2025 to 2030—a formidable task given the current logistical and regulatory bottlenecks. The analysis underscores the urgency of addressing these non-cost barriers to unlock the full potential of the law's clean energy and emissions reduction ambitions.

In addition to promoting clean energy generation and EV adoption, the Inflation Reduction Act has spurred domestic manufacturing of clean energy technologies. With $44 billion invested in U.S. clean-energy manufacturing last year, this aspect of the law has seen considerable success, and permanent clean energy tax credits are being debated to sustain momentum, demonstrating the Act's capacity to drive economic and industrial transformation.

The law's impact extends to emerging clean energy technologies, offering tax incentives for advanced nuclear reactors, renewable hydrogen production, and carbon capture and storage projects. While these initiatives hold promise for further emissions reductions, their development and deployment are still in the early stages, with tangible outcomes expected in the longer term.

While the Inflation Reduction Act has catalyzed significant strides in certain areas of the United States' clean energy transition, including an EV inflection point in adoption trends, it faces substantial hurdles in fully realizing its objectives. Overcoming logistical, regulatory, and market challenges will be crucial for the nation to stay on course toward its ambitious climate goals, underscoring the need for continued innovation, investment, and policy refinement in the journey toward a sustainable energy future.

 

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Electric vehicle charging network will be only two thirds complete by Friday deadline, Ontario says

Ontario EV Charging Network Delay highlights permitting hurdles, grid limitations, and public-private rollout challenges across 250 sites, as two-thirds of 475 chargers go live while full provincewide infrastructure deployment slips to fall.

 

Key Points

A provincial rollout setback where permitting and grid issues delay full activation of Ontario's 475 public EV chargers.

✅ Two-thirds of 475 chargers live by the initial deadline

✅ Remaining stations expected online by fall

✅ Delays tied to permits, site conditions, and grid capacity

 

The Ontario government admitted Wednesday that it will fall short of meeting its deadline this Friday of creating a network of 475 electric vehicle charging stations in 250 locations across the province, and it's blaming unforeseen problems for the delay.

"We know some of our partners have encountered difficulties around permitting and some of the technical aspects of having some of the chargers up and running, even as we work to make it easier to build EV charging stations across Ontario," said Transportation Minister Steven Del Duca.

Two-thirds of the network will be live on Friday with the rest of the stations expected to be up and running by fall, according to the Ministry of Transportation. 

"Each of our partners' individual charging stations are subject to different site conditions, land ownership, municipal permitting, electrical grid limitations, as seen in regions where EV infrastructure lags, and other factors which have influenced timelines," said Bob Nichols, senior media liaison officer for the Transportation Ministry, in a statement. 

Because the stations are located in various community centres, retail outlets and other public spaces, Del Duca said the government's public and private sector partners are facing challenges in obtaining permits but are "motivated to get it right."

Cara Clairman, president and CEO of Plug'n Drive, an organization dedicated to accelerating the rollout of electric vehicles, says she isn't concerned about the delay.

"It was a pretty aggressive timeline. The EV community is pretty happy with the fact that it is going to happen. It might be slightly delayed but I think overall the mood is positive," she said.

Clairman said there are now more than 10,000 electric vehicles in the province and that more growth is expected as Ontario's next EV wave emerges in the market. She doesn't believe the delay in the rollout of charging stations will deter anyone from purchasing electric vehicles, even amid EV shortages and wait times in some segments.

"It certainly does help to persuade new folks to get on board but I think since they know it is coming, I don't see it having a big impact." 

Horwath not surprised

NDP Leader Andrea Horwath said she's not surprised the government didn't meet its target.

"You shouldn't be making these promises if you can't fulfil them, that's the bottom line," she said. "Let's be realistic with
what you're able to achieve."

Progressive Conservative transportation critic Michael Harris suggested the Liberals don't have their priorities straight when it comes to electric vehicles.

"I think the focus for Kathleen Wynne was handing out $14,000 rebates to owners of Teslas, while they really should have been focusing their time and energy on ensuring that the infrastructure for electric vehicles has actually been rolled out," Harris said.

Covering every corner

Del Duca said the ministry has seen "some fairly tremendous success" despite the delays but that there have been a few challenges in building a network that ranges across the province, even as N.L.'s first fast-charging network is touted as just the beginning elsewhere. 

"We definitely want to make sure we're building a network that covers every corner of Ontario. Yes, we have some challenges and we are slightly delayed," the minister said.

"We anticipate being able to provide more resources in the coming months to continue to deploy an even broader network of charging infrastructure, including in northern Ontario."

Del Duca said a map on the ministry's website showing where the charging stations are installed should be updated in the next few days.

Premier Wynne committed to building a charging network for electric vehicles across Ontario at the 2015 climate change talks in Paris.

The $20 million in funding for the charging stations comes from Ontario's $325 million Green Investment Fund, which supports projects that fight climate change.

 

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Elon Musk says cheaper, more powerful electric vehicle batteries are 3 years off

Tesla Battery Day Innovations detail larger cylindrical EV cells with higher energy density, greater power, longer range, cobalt-free chemistry, automated manufacturing, battery recycling, and lower cost per kWh to enable an affordable electric car.

 

Key Points

Tesla Battery Day innovations are new EV cells and methods to cut costs, extend range, and scale production.

✅ Larger cylindrical cells: 5x energy, 6x power, 16% more range

✅ Automation and recycling to cut battery cost per kWh

✅ Near-zero cobalt chemistry, in-house cell factories worldwide

 

Elon Musk described a new generation of electric vehicle batteries that will be more powerful, longer lasting, and half as expensive as the company’s current cells at Tesla’s “Battery Day”.

Tesla’s new larger cylindrical cells will provide five times more energy, six times more power and 16% greater driving range, Musk said, adding that full production is about three years away.

“We do not have an affordable car. That’s something we will have in the future. But we’ve got to get the cost of batteries down,” Musk said.

To help reduce cost, Musk said Tesla planned to recycle battery cells at its Nevada “gigafactory,” while reducing cobalt – one of the most expensive battery materials – to virtually zero. It also plans to manufacture its own battery cells at several highly automated factories around the world.

The automaker plans to produce the new cells via a highly automated, continuous-motion assembly process, according to Drew Baglino, Tesla senior vice-president of powertrain and energy engineering, a contrast with GM and Ford battery strategies in the broader market today.

Speaking at the event, during which Musk outlined plans to cut costs and reiterated a huge future for Tesla's energy business during the presentation, the CEO acknowledged that Tesla does not have its new battery design and manufacturing process fully complete.

The automaker’s shares slipped as Musk forecast the change could take three years. Tesla has frequently missed production targets.

Tesla expects to eventually be able to build as many as 20m electric vehicles a year, aligning with within-a-decade EV adoption outlooks cited by analysts. This year, the entire auto industry expects to deliver 80m cars globally.

At the opening of the event, which drew over 270,000 online viewers, Musk walked on stage as about 240 shareholders – each sitting in a Tesla Model 3 in the company parking lot – honked their car horns in approval.

As automakers shift from horsepower to kilowatts to comply with stricter environmental regulations amid an age of electric cars that appears ahead of schedule, investors are looking for evidence that Tesla can increase its lead in electrification technology over legacy automakers who generate most of their sales and profits from combustion-engine vehicles.

While average electric vehicle prices have decreased in recent years thanks to changes in battery composition and evidence that they are better for the planet and household budgets, they are still more expensive than conventional cars, with the battery estimated to make up a quarter to a third of an electric vehicle’s cost.

Some researchers estimate that price parity, or the point at which electric vehicles are equal in value to internal combustion cars, is reached when battery packs cost $100 per kilowatt hour (kWh), a potential inflection point for mass adoption.

Tesla’s battery packs cost $156 per kWh in 2019, according to electric vehicle consulting firm Cairn Energy Research Advisors, with some studies noting that EVs save money over time for consumers, which would put the cost of a 90-kWh pack at around $14,000.

Tesla is also building its own cell manufacturing facility at its new factory in Germany in addition to the new plant in Fremont.

 

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