It's 580 MWH (megawatt hours - storage) not MW (megawatts - output).
As you rightly said, their example doesn't make sense as it suggests that the battery can somehow operate at four times its maximum output. That's why I suggested a better scenario was 250K houses for two hours.
Edit: sorry, can't seem to reply to your post properly (i.e. doesn't seem to embed correctly)
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