Elon Musk’s Tesla has officially become a UK Electricity Generator says Ofgem

It’s Official

“The Gas and Electricity Markets Authority (“the Authority”) hereby gives notice pursuant to section 6A(5) of the Electricity Act 1989 (“the Act”) that on 12 June 2020 an electricity generation licence was granted under section 6(1)(a) of the Act to Tesla Motors Limited (company number 04384008) whose registered office is situated at 197 Horton Road, West Drayton, UB7 8JD, United Kingdom, authorising it to generate electricity in the area specified in Schedule 1 for the purpose of giving a supply to any premises or enabling a supply to be so given,” said Ofgem in a press release.

Virtual Power Plants

Tesla’s entry into the UK has taken some by surprise and caused confusion as to what its intentions are in the energy sector.

Market analysts are predicting that Tesla intends to develop ‘virtual power plants’ using its real-time trading and control platform called Autobidder. 

What is Autobidder?

According to the Tesla website, ‘Autobidder provides independent power producers, utilities and capital partners the ability to autonomously monetise battery assets. 

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.

Autobidder claims that, through market bidding, it has 'added competition to drive down energy prices'

The technology is currently in use in South Australia at the Hornsdale Power Reserve.

Solar Energy and Energy Storage

It’s no secret that Tesla has big ambitious for energy generation and supply. It’s advancements on solar power generation and energy storage has led Elon Musk to say that Tesla Energy could become as large as its automotive branch and has grand ambitions.

“I think there is generally a lack of understanding or appreciation for the growth of Tesla Energy. In the long term, I expect Tesla Energy to be of the same or roughly the same size as Tesla’s automotive sector or business. Tesla Energy is going to be a major part of Tesla’s activity in the future. And Tesla’s mission from the beginning has been to accelerate the advent of sustainable energy – that means sustainable energy generation and sustainable energy consumption in the form of electric vehicles,” Elon Musk has been quoted as saying.

Tesla has already made partnerships with UK energy supplier Octopus energy who offers a Tesla energy plan designed to support consumers with electric vehicles and who produce their own renewable energy.

Further Reading

Half of Energy Suppliers have failed to hit Smart Meter Installation Targets

Are Emergency VAT cuts on the way? What will this mean for Energy suppliers and Energy Billing?

Government announces £80 million investment to cut emissions as renewable energy smashes UK record

Dyball Associates are proud to help new supply businesses successfully launch in the UK market.

Through our energy market consultancy services, and the software we’ve developed, we’re supporting new UK electricity and gas suppliers get set up and start supplying.

For more information on how to start and manage an energy company, get in touch with Dyball Associates today.