American electric vehicle giant Tesla is set to overthrow electricity retailers in the Australian market and disrupt traditional incumbents’ business models.
To do that, Tesla plans to integrate its innovative technologies like rooftop solar, batteries, and electric vehicles to offer clean energy in the country through the new business, “Tesla Energy Ventures Australia Pty Ltd (TEVA).”
AER approves Tesla’s application
TEVA applied with the Australian Energy Regulator (AER) to get the necessary approval to be an electricity retailer under the National Energy Retail Law on Thursday, November 16.
The AER approved the application, officially allowing TEVA to retail its clean electricity for Australian customers.
The government body is now accepting applications from stakeholders on TEVA’s application. Submissions will end on December 18, as reported by Teslarati.
Business operation plans
According to Renew Economy, Tesla aims to incorporate storage, renewable energy production, and electric vehicles in a retail electricity package for Australian households throughout the main electrical grid. This system is something the traditional incumbents have not yet adopted.
Tesla aims to penetrate key markets in the country, including New South Wales, Queensland, South Australia, Tasmania, and the ACT. The company plans to target households and small- and large-scale commercial customers.
It is also worth noting that Tesla aims to initially prioritize customers who already have any of its Powerwall, Megapack, or EVs.
“This is just the beginning. With Tesla building its most affordable car yet, Tesla continues to make products accessible and affordable to more and more people, ultimately accelerating the advance of clean transport and clean energy production. Electric cars, batteries, and renewable energy generation and storage already exist independently, but when com mined, they become even more powerful – that’s the future we want.”
Tesla
Melbourne-based TEVA’s Global Marketing and Content Head will lead the Australian business unit.
Significance
Tesla’s total number of customers in Australia is at about 150,000 now, including car and energy storage product owners.
By starting with them, Tesla aims to take control over the appliances to service grid markets, such as pricing events and frequency control.
This initiative will enable Tesla to better manage the load of its enormous Supercharger network in Australia.
More importantly, the new Australian venture will facilitate the shift to a more sustainable and efficient energy generation and consumption in the country. It will significantly reduce the pressure on Australia’s grid by utilizing renewable energy from solar panels. It can also incentivize customers with credits to reduce their electricity bills.
You can access Tesla’s application to AER here.
