Elon Musk’s Tesla, Inc. has connected a massive battery to the Texas power grid:
A Tesla subsidiary registered as Gambit Energy Storage LLC is quietly building a more than 100 megawatt energy storage project in Angleton, Texas, a town roughly 40 miles south of Houston. A battery that size could power about 20,000 homes on a hot summer day.
This megabattery may be the world’s largest, surpassing another Tesla project in Australia:
Tesla’s battery project in South Australia, launched in 2017, is adjacent to a wind farm and can store surplus electricity generated on gusty nights for daytime demand. At 100 megawatts, it was the largest battery project in the world at its launch.
Battery packs like these could make it easier to store renewable energy when the sun is shining and the wind is blowing. And the energy market is so big, a major push in this area could help justify Tesla’s lofty valuation. From the Bloomberg report:
“I think long-term Tesla Energy will be roughly the same size as Tesla Automotive,” Musk said during an earnings call in July 2020. “The energy business is collectively bigger than the automotive business.”
Battery prices are falling precipitously, making such a future increasingly plausible. Prices have fallen from $668/kWh in 2013 to $137 last year, a decrease of nearly 80%.
For more on Tesla, electric vehicles, and financial markets, check out these posts:
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- SPACs Are a Bubble and Nikola’s Fake Truck Is Proof
- 28% Of Americans Bought Meme Stocks in January
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Photo: “Elon Musk” by dmoberhaus is licensed under CC BY 2.0