Elon Musk’s Grand Plan

Elon Musk wants to sell you a battery. And he doesn’t care whether you drive an electric car. Musk unveiled his grand “Tesla Energy” scheme to electrify the world on Thursday night, and it actually makes a lot of sense. Tesla, which is in the middle of building a vast “Gigafactory” battery production plant in the Nevada desert, plans to offer new versions of the batteries it puts in its Model S car to residential, commercial, and utility customers.

It's not news that I'm a huge fan of Elon Musk's initiatives, Tesla, SpaceX (and SolarCity) and how they create amazing synergies among their technologies and businesses models. There's really few people that are pushing forward in a deterministic way, but when someone does, it really shows.

This last move introducing the Powerwall I think is, at least, as ambitious as Tesla or SpaceX. Maybe it's not as shinny or cool, but the scale and the stablished industries it tries to surpass are huge. The value proposition is clear and I'll try to outline some of the benefits I see in the surface.

  • Avoid peak rates, both in consumption and charging
  • Keep things running (for a while) during an outage
  • It helps the generation via renewables
  • Keeping electricity instead of selling at a low rates. In Spain this could be even better because the law doesn't allow the re-sell

Electricity has always been an "just in time market" meaning that the generation was directly linked to the consumption. Powerwall at scale could easily represent the end of this model. It's long term, yes. It's ambitious, yes. But the benefits in the long run could be incredible.