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Tesla Megapacks Go Live at New Texas Energy Storage Project to Bolster Grid Stability

The Old 300 Storage project in Needville, Texas, has officially come online, integrating Tesla Megapack systems into the ERCOT grid with a capacity of 250 MW/500 MWh. The facility can deliver two hours of stable power during peak demand, enhancing the flexibility and reliability of Texas' power grid.

Editorial Team8/9/2026Updated 8/9/2026

New Texas Energy Storage Project Now Connected to the Grid

The Old 300 Storage project, located in Needville, southwest of Houston, Texas, was officially connected to the ERCOT grid on August 5. Developed by Danish energy company Ørsted, the facility utilizes Tesla Megapack large-scale energy storage systems with a total capacity of 250 MW/500 MWh. At full output, it can continuously supply 250 MW of power for two hours, effectively alleviating supply pressures on the Texas grid during peak demand or extreme weather conditions.

The Tesla Megapack systems were manufactured at Tesla’s Megafactory in Lathrop, California, the largest industrial utility-scale battery energy storage system (BESS) factory in the United States. Each Megapack integrates battery modules, inverters, thermal management, and control units, significantly reducing the equipment assembly required on-site and improving deployment efficiency. Tesla’s current two-hour Megapack configuration provides approximately 1.9 MW of power and 3.85 MWh of storage per unit.

Energy Storage System Enhances Grid Flexibility and Resilience

The Megapack system offers bidirectional power regulation, charging when electricity supply is abundant and discharging when grid demand rises. It also provides ancillary services such as voltage and frequency regulation. With electricity demand in the ERCOT grid continuing to grow and extreme weather events increasing the risk of supply-demand imbalances, the rapid response capability of energy storage systems has become critical. Melissa Peterson, President of Ørsted Americas Onshore, stated that battery energy storage has already played a significant role in supporting the ERCOT grid during periods of tight supply and demand margins. The activation of the Old 300 Storage project will further enhance the stability and flexibility of the grid.

The Old 300 Storage project is adjacent to Ørsted’s Old 300 Solar farm but operates independently. The storage system is not limited to storing power generated by the solar farm; it can charge directly from the ERCOT grid and discharge power back into it, greatly increasing operational flexibility. The Old 300 Solar farm has been operational since 2024, generating enough electricity annually to power approximately 80,000 Texas households and businesses.

Driving Local Economic Growth and Energy Transition

Ørsted estimates that the combined Old 300 Solar and storage projects will generate approximately $110 million in property tax revenue for the local community, supporting schools, infrastructure, and emergency services. This project also expands Ørsted’s operational onshore portfolio in the U.S. to around 6 GW, further solidifying its leadership position in the American renewable energy market.

Through this project, Tesla has added 500 MWh of deployment to its global stationary energy storage business. To date, Tesla has deployed over 58 GWh of industrial energy storage systems across more than 65 countries, continuing to expand its influence in the energy storage sector. The activation of the Old 300 Storage project not only strengthens the resilience of the Texas grid but also injects new momentum into the local economy, highlighting the pivotal role of energy storage technology in the energy transition.

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