Tesla want to be a UK Electricity Supplier
Discussion
https://www.bbc.co.uk/news/articles/c3v3333rlp7o
So who would sign up?
I can see him being rather disruptive, not sure if that is a good or bad thing.
So who would sign up?
I can see him being rather disruptive, not sure if that is a good or bad thing.
Collectingbrass said:
It'll be interesting to see whether OfGem even try and apply their version of the "fit and proper person" test.
It's the company not the man. I guess the best way in is to propose a plan that will get GB closer to 'net zero'... I think that unicorn will trump (no pun intended) most opposition.The real issues we have are dependency on overseas power, the fact it's linked to global pricing, too much dependency on renewables and the green levy.
Edited by Simpo Two on Monday 11th August 17:16
normalbloke said:
Nope, he’s a throbber.
He is a revolting little turd and bent as Hades, however, the U.K. utilities market is in desperate need of new entrants to stimulate a return to price competition. The key will be the model they use to enter the market. One assumes it will be based around under cutting but this time around it can't be done by burning investor capital so will require a different model. I would imagine they'll try to build storage infrastructure to hoover cheap over supply but the issue will be how to transport that to the most lucrative markets. Ie Scottish wind to Home Counties homes etc.
I don't imagine they'll try would be seeking to enter the market unless they had fathomed a means to undercut.
If they can find a way to significantly cut bulk electricity prices for major users they will be on to a winner. One of my clients uses a staggering amount of power, the UK is 3x the price per unit of Midwest US and almost twice the price of continental Europe. Hence the UK plant attracts far less capex spend and therefore fewer new jobs etc…all because of the electricity price.
Why do people get so frothy that one individual sits at the top of a company that has by many measures been disruptive for the good of progress (Tesla / Charge network, Starlink, space travel etc)
It boggles that someone, sorry a Global Company, seeing an opportunity to nudge an industry (that needs nudging) should be vilified.
I remember the good old days of Bill Gates being akin to Darth Vader ffs because of popularist whining.
It boggles that someone, sorry a Global Company, seeing an opportunity to nudge an industry (that needs nudging) should be vilified.
I remember the good old days of Bill Gates being akin to Darth Vader ffs because of popularist whining.
Ah man, the BBC comments page makes depressingly ignorant reading as usual.
This is a good thing, between Tesla's EV adoption, their power wall and renewable power people have, this creates a really positive bi-directional capability, of people charging everything when it is cheap and sunny, then being paid to discharge it back into the grid during peak times.
It's about time the energy market had a shake up, and some innovation forced upon it.
This is good news for us all.
This is a good thing, between Tesla's EV adoption, their power wall and renewable power people have, this creates a really positive bi-directional capability, of people charging everything when it is cheap and sunny, then being paid to discharge it back into the grid during peak times.
It's about time the energy market had a shake up, and some innovation forced upon it.
This is good news for us all.
Lefty said:
If they can find a way to significantly cut bulk electricity prices for major users they will be on to a winner. One of my clients uses a staggering amount of power, the UK is 3x the price per unit of Midwest US and almost twice the price of continental Europe. Hence the UK plant attracts far less capex spend and therefore fewer new jobs etc…all because of the electricity price.
Retail split:
Business:
What you notice about retail is that there is around 50% of the cost that could potentially be played with. The wholesale price and the environmental/social taxation.
The reason wholesale is as high as it is is because you can sell cheap solar or wind at the highest production price in the market at the point of sale which is usually gas derived electricity. The highest wholesale price sets the price for all electricity.
So on the retail side, can a provider avoid gas derived pricing and build storage to do so and can they reduce their environmental levies by doing so?
As for business, they have the same issue, how to make use of renewables at the points when gas isn't setting the price. You'd imagine there was no work around for very heavy users.
I think the way Tesla will do it is to make retail clients rent batteries which are then filled on cheap rate just like car batteries. And the product will only be viable for households where the peak daily electricity demand in winter can be met by the storage and like Octopus they'll use easily and willingly consumed man maths for the finances and other bits.
But the problem there is that Tesla batteries are woefully overpriced and reliant on f
kwits who are desperate to be associated with consumer brands to validate their existence and those professional shoppers and credit mongers aren't usually massive fans of Nazi scum and their wk brands. PushedDover said:
Unless ‘used’ and recycled EV batteries…. 
Cheaper to use new cells though by the time you've dismantled, sorted and reassembled the half clapped out car ones. Best uses for old car cells is the same as old car tyres, tip them into incinerators or the ocean and print out some paperwork that says they've been recycled.
He obviously thinks there is an opportunity to make money, whether that is actual profit or subsidies from somewhere I don't know.
I would guess being a UK electricity supplier is a means to an end with the ultimate goal being to get his battery storage technology/equipment into the UK grid. This would let him buy up excess generation for peanuts, store it and sell for a profit during peak time.
There are already companies doing this so he wouldn't be blazing a trail but bringing the ability to scale the amount of battery storage in the grid. I wonder if the impact of large scale grid storage might break the pricing link where all electricity is priced at the highest rate irrespective.
As much as I am not a fan of his, if he can be kept as arms length (difficult) this could rip open the electricity market pricing as it currently is, ramp up renewable generation but hopefully without the recent Spanish problem.
Whatever happens it won't be boring.
I would guess being a UK electricity supplier is a means to an end with the ultimate goal being to get his battery storage technology/equipment into the UK grid. This would let him buy up excess generation for peanuts, store it and sell for a profit during peak time.
There are already companies doing this so he wouldn't be blazing a trail but bringing the ability to scale the amount of battery storage in the grid. I wonder if the impact of large scale grid storage might break the pricing link where all electricity is priced at the highest rate irrespective.
As much as I am not a fan of his, if he can be kept as arms length (difficult) this could rip open the electricity market pricing as it currently is, ramp up renewable generation but hopefully without the recent Spanish problem.
Whatever happens it won't be boring.
Inbox said:
He obviously thinks there is an opportunity to make money, whether that is actual profit or subsidies from somewhere I don't know.
I would guess being a UK electricity supplier is a means to an end with the ultimate goal being to get his battery storage technology/equipment into the UK grid. This would let him buy up excess generation for peanuts, store it and sell for a profit during peak time.
There are already companies doing this so he wouldn't be blazing a trail but bringing the ability to scale the amount of battery storage in the grid. I wonder if the impact of large scale grid storage might break the pricing link where all electricity is priced at the highest rate irrespective.
As much as I am not a fan of his, if he can be kept as arms length (difficult) this could rip open the electricity market pricing as it currently is, ramp up renewable generation but hopefully without the recent Spanish problem.
Whatever happens it won't be boring.
Yup. In reality I suspect it'll mostly be finance deals on house batteries and wonky, unregulated financial advice that shows how trendy consumers can make bank with this critical side hustle and impress their neighbours. And unlike EVs, the owner's politics will align with the average pensioners'. I would guess being a UK electricity supplier is a means to an end with the ultimate goal being to get his battery storage technology/equipment into the UK grid. This would let him buy up excess generation for peanuts, store it and sell for a profit during peak time.
There are already companies doing this so he wouldn't be blazing a trail but bringing the ability to scale the amount of battery storage in the grid. I wonder if the impact of large scale grid storage might break the pricing link where all electricity is priced at the highest rate irrespective.
As much as I am not a fan of his, if he can be kept as arms length (difficult) this could rip open the electricity market pricing as it currently is, ramp up renewable generation but hopefully without the recent Spanish problem.
Whatever happens it won't be boring.
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