Tesla (TSLA) announced a partnership with Con Edison, New York's largest electric utility company, on a project to propose a series of Powerpack installations that would provide grid services for the energy company.
Con Ed said that the battery systems will be developed, designed, installed, operated and maintained by Tesla. The battery packs provide reliable storage for renewable energy.
Last year, Tesla CEO Elon Musk challenged Australian Prime Minister Malcolm Turnbull to allow him to build the packs in his country after he said renewable energy was to blame for blackouts in the country.
The Powerpacks built in the country were able to inject enough power into the grid during blackouts on two occasions to allow it to keep running, minimizing the loss of power to customers.
"Under this demonstration, the flexible operating characteristics of distributed energy storage will be employed to obtain the highest value use of the resource at any point in time," Con Edison said in a statement.