Tesla Touting for Texas Electricity

Tesla Touting for Texas Electricity

According to a job posting located in Texas, the electric car manufacturer Tesla intends to start a retail electricity business in Texas. The position is listed as "Product Operations Manager, Retail Electricity" and is located in Austin. Its primary responsibility is to support the establishment and expansion of a new electricity retailer in the Texas market.

Elon Musk, the CEO of Tesla, has previously stated that the company's worldwide utilities business may surpass its auto industry. At its Texas Gigafactory, which is the location of its auto manufacturing facility, Tesla is already constructing a rooftop solar array.

Although the company's most recent efforts to enter the retail electricity market may appear puzzling, the plan fits in with Tesla's overarching goals for its renewable energy business. Tesla wants to become an electricity supplier since it already creates energy-producing and energy-storing equipment, such as its lithium-ion battery-equipped electric automobiles and its line of battery storage solutions for households and businesses. The logical next step is to sell the power produced by these devices to consumers or the grid.

Texas’s Major Plans for Texas

Tesla Energy Ventures, a brand-new division of electric vehicle manufacturer Tesla with offices in California, submitted an application to become a retail power provider in the state of Texas in 2021. The business intends to offer grid-drawn electricity to customers as well as electricity from its battery storage solutions, according to reports. Customers who purchase its solar panels might also be able to resell extra electricity to the grid thanks to the company's grid transaction software.
Tesla's decision will enhance operations. It aims to build a huge battery storage facility adjacent to its Austin production location, the application states. The factory will provide the company with a ready and cost-effective energy source to manufacture its cars. The Electricity Reliability Council of Texas (ERCOT), the state's grid operator, plans to build 3,008 MW of battery storage by the end of 2022, a major increase from the 225 MW created by the end of 2020. ERCOT now has more installation plans, which gives them a significant market for Tesla's battery.

Tesla Megapacks 

Tesla Energy Ventures Potential

The move by Tesla to offer retail electricity might increase the top line for its energy services division. Its battery storage sector will likely have a bright future, according to analysts. Battery storage may increase to a third of the company's whole business and generate more than $200 billion in revenue annually.

In Texas, there are more than 130 REPs, and a large number of them operate under multiple names. Tesla, however, is in a special position because they have added energy storage capability to numerous household solar systems, giving them access to distributed generation and a wealth of data. Instead of relying solely on large-scale generating, Tesla can buy electricity from its own consumers and sell it in the grid. They can also sell electricity during periods of supply shortages on the power grid because they have access to distributed energy storage systems (Tesla Powerwall).

The 4680 Cell is Key for Tesla

Tesla is also advancing battery technology, with the new 4680 cell serving as an illustration. The 4680 cell offers five times the storage capacity and six times the power of the 2170 cell, according to IEEE Spectrum. Given that the 4680 cell is 5.5 times bigger, this additional capacity gives an electric vehicle a 16% longer range. Technically speaking, it is difficult to scale up manufacturing capacity at the required rate. Tesla wants to reach 100 GWh of capacity by 2023 and 3,000 GWh by 2030.

If the 3,000 GWh manufacturing goal is met, Tesla would be able to deliver 20 million automobiles annually. It's vital to remember that the 4680 cell is not a Tesla-only invention. Elon Musk stated that Tesla plans to keep purchasing from Panasonic and LG, two other firms that create the cells, in order to reach its EV production targets.
The tab-free design of the 4680 cells has two benefits: it makes production easier and lowers the risk of overheating because the battery has less electrical resistance. The cost of the new cells per kilowatt-hour of storage capacity can decrease by 56%.