Tesla Energy in Texas Plans for the latest retail electricity provider

Maybe Tesla’s strategy for selling electricity in Texas

Tesla has previously been involved in the energy sector, but has stayed away from direct electricity sales. Instead, they focused on providing energy storage systems for electricity companies and solar and storage systems for consumers.

  • Now that Tesla REP is in Texas, it can offer energy plans to consumers who already own their products, leveraging existing brand recognition.
  • Tesla’s products for the residential market include solar roof shingles, conventional solar panels and the increasingly popular Tesla Powerwall.
  • Tesla customers constantly communicate with their mobile applications and websites, which have the potential as marketing tools for energy plans.

With a sufficient number of customers with distributed production and storage capacity, Tesla could implement and virtual power plant or VPP in Texas. Simply put, VPP combines several smaller systems using a smart control platform and the system can operate like a conventional power plant. Tesla already operates a project of this type in South Australia, combining 50,000 domestic solar systems to achieve a total production capacity of 250 MW and a total energy storage capacity of 650,000 kWh.

Tesla would be able to deploy a similar system in Texas store and sell energy when electricity prices are high. Wholesale prices in Texas tend to reach their maximum value at high consumption and also during emergency conditions. For example, prices rose from an average of $ 50 / MWh to $ 9,000 / MWh in February 2021, during a power shortage caused by the winter storm Uri.

The outages of February 2021 were one of the factors behind Tesla’s decision to become a Texas electricity retailer. If home battery systems can achieve widespread acceptance, they could be connected to virtual power plants, making the grille more stable and reliable at the local level. Tesla already offers energy plans in the UK and Australiaand domestic energy storage plays an important role in both cases.

Tesla, Brookfield Asset Management and Dacra (real estate developer) are collaborating on innovative residential housing in Austin, SunHouse in Easton Park. All the houses in the project are equipped with solar panels and energy storage and the community is able to send energy to the grid when there is overproduction.

David Berry

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