The Telegraph examined a job posting from Tesla and reported that the company, led by Elon Musk, was planning to enter the UK energy market as an electrical supplier. The energy sector, which has been in disarray for the previous two years, is poised to be further upended by Tesla’s entry.
During the epidemic, petrol prices spiked, driving increasing the cost of energy in the United Kingdom. According to Bloomberg, as many as 31 energy companies went bankrupt as a result of price limitations on bills at the consumer end.
Because of price controls, energy companies have limited room to experiment with new services for their clients; this is where Tesla’s presence could make a difference. Elon Musk’s company isn’t planning to build new power plants in the country, but rather to deploy existing plants and help customers save money.
Acquire cheap and resell expensively
The cost of energy in developed nations like the United Kingdom and the United States is market-driven. The cost of using energy increases during peak times compared to off-peak times.
As it stands, a household in the UK can sell excess solar-generated electricity back to the grid.
However, Tesla’s strategy is to purchase power when demand is low, store it, and then sell it back to the grid when demand is high, pocketing the difference.
One might think that Tesla would deploy Megapacks across the country to accomplish this goal, but the necessary infrastructure already exists and only has to be redistributed.
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The simulated nuclear reactor
Tesla’s solar roof options and Powerwall home energy storage solutions have given the company a foothold in the UK energy industry. The Telegraph reports that between 10,000 and 20,000 Powerwalls have been installed in the United Kingdom.
The company’s current plan is to electronically link these Powerwalls together to create a massive battery pack that can be charged during times of low demand and released during times of high demand. Separately, these components can’t match the output of a power plant, but together they can.
Powerwall units automate these processes, thus the owner may do very little to increase their net energy outflow revenue.
Users in Texas, where Tesla implemented a similar system last year, have reported making even more than $100 when demand prices are really high. In addition, the business is allowing EV owners to act as a power plant by feeding electricity back into the grid during peak demand.
According to the job posting, Tesla already has a license to generate power in the UK and is in the process of applying to the regulator, the Office of Gas and Power Markets (Ofgem).
It appears like Tesla is moving towards launching its own product in the UK after ending its partnership with another electricity supplier in 2020.
Tesla now has a wider variety of products available.
