Leading American automaker Tesla is apparently planning to penetrate Britain’s energy market, hinted by the company’s recent job advertisement. It is worth noting that Tesla already operates the same business in the US.
The Musk-led company’s plan to register as an electricity supplier with the industry regulator and offer a “retail electricity product in the UK” has been revealed by the said job advertisement.
In that sense, Tesla is looking for a skilled and experienced energy executive “with a healthy skepticism of the status quo” to take the head of operations position at its Tesla Electric in the UK.
The job listing claims that Tesla Electric aims to “support the transition of the entire electricity grid to 100% renewables.”
How does it work?
Tesla Electric may be looking to aid owners of its Powerwall battery, solar panels, or electric vehicles to store energy when it is cheap and sell it back to the grid when its prices increase.
Simply put, Tesla Powerwall owners can charge up the technology overnight while the energy is cheap and use them during the day when it is more expensive.
In that sense, Tesla Electric plans to sell renewable electricity to UK households and then buy back stored energy during peak demand.
Through Tesla Powerwall, this service enables households to evade market prices peak when renewable electricity lacks sufficient supply. It will also aid the electric grid in reducing its reliance on fossil fuels by increasing the application of renewable energy.
“Tesla Electric is Tesla’s retail electricity offering, currently available to Tesla product owners in selected markets globally, such as Texas. We believe strongly that simplifying and improving the customer experience around retail electricity and virtual power plants is necessary to drive significant adoption amongst consumers.”
Tesla
Tesla Powerwalls installation costs about £9,500. Industry source reportedly claims that Tesla has already deployed 10,000 to 20,000 units into UK households.
Excitingly, Tesla EV owners will also soon access the service under the Ofgem plans, which aim to enable EVs to sell energy back to the electric grid.
The job advertisement revealed that Tesla aims to apply to Ofgem for an electricity supply license. It will enable the company to sell energy to domestic and non-domestic premises. Notably, suppliers must apply for a separate license to sell gas.
Tesla had already attempted to disrupt the UK’s energy industry in 2020 when it partnered with Octopus Energy. However, the company canceled the deal earlier this year, hinting that it aims to establish its own service. It also gained a generation license from Ofgem in 2020, allowing it to sell energy commercially.
See Also:
- Tesla, Canada partner to open Superchargers to non-Tesla electric vehicles
- Tesla launches Tesla Electric for Texas
- Tesla electric vehicle repairs as part of General Motors’ expanding new business
- Tesla solidifies its reign as Europe’s electric vehicle market leader
- Tesla solidifies its reign as Europe’s electric vehicle market leader
Tesla’s entry into Britain will undoubtedly aid the country’s energy industry amid a two-year turmoil among local providers. Numerous energy providers left the business due to rising wholesale costs. Meanwhile, competition has slowed due to the price cap on bills.
Tesla launched a “master plan” to cut fossil fuels from the world economy by adopting electrification and smart power storage technologies. The automaker discovered it was “technically feasible,” requiring “less investment and less material extraction.”
