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Tesla has applied for a license to supply electricity in the United Kingdom, The Telegraph reports, citing a document.
According to sources the daily cited in its report, Tesla will use its battery technology to enter the UK energy market. Other details were not disclosed.
Tesla, which reported a surprising profit for the first quarter despite the coronavirus outbreak, has been expanding its presence in battery storage alongside its growth in EVs. Its solar business, however, has not been doing all that well. For the first quarter of the year, Tesla reported $325 million in power generation and storage product sales revenue, a decline from the end of 2019. Elon Musk explained the decline with "Covid essentially shut us down."
Even so, Musk has made no secret of his plans to expand Tesla's presence in energy, to the point of becoming more an energy company than a car company. Last year, Electrek reported on Musk's plan to turn Tesla into a distributed global utility, and now it has followed up with a report on the release of a new product: the Autobidder.
"Autobidder provides independent power producers, utilities and capital partners the ability to autonomously monetize battery assets," Tesla explains. "Autobidder is a real-time trading and control platform that provides value-based asset management and portfolio optimization, enabling owners and operators to configure operational strategies that maximize revenue according to their business objectives and risk preferences."
It seems the foundation of Tesla's distributed utility business will be its battery storage business.
"Batteries are highly flexible assets, but they require smart strategies and software to realize their full value. Autobidder allows owners to realize this value by handling the complex co-optimization required to successfully stack multiple value streams simultaneously," Tesla says.
In this context, an expansion into the electricity sector of the UK, which has some of the most renewables-friendly legislation, looks like a logical step in Tesla's energy plans. Later this year, the company is holding a "Battery Day", when the company will share "a lot of exciting news. And I think it would be one of the most exciting days in Tesla's history," CEO Musk said, as quoted by Inverse.
By Irina Slav for Oilprice.com
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Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.