Tesla Motors Inc (NASDAQ:TSLA) Might Eventually Provide Power Grid Services

Tesla Motors Inc (NASDAQ:TSLA) Might Eventually Provide Power Grid Services

Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk claims that his company is considering launching grid services.

The company launched its grid battery business as part of its plan to create batteries that can store energy for the power grid as well as buildings. However, Tesla officials are now open to the idea of selling grid battery services. This would have to include the use of smart algorithms, software, and data to implement control measures for efficient management of the power grid. Musk was recently interviewed by a reporter about the matter and his response was that the firm might eventually venture into grid services.

Musk further added that his company’s goal is to rapidly push for sustainable energy. Tesla will, therefore, have to go back to the drawing board to determine the best path towards achieving that goal. The existing power grid is very limited as far as power storage is concerned. A lot of electricity is wasted using the current production methods while the rest is transmitted to the end user. One of the best ways to enhance efficiency in the system is to include batteries in various places within the grid and especially near buildings and clean energy firms.

Electricity generating firms can take advantage of batteries to supplement the power grids especially during times when electricity is in high demand such as in the summer. This will help eliminate the need for expensive and inefficient power plants for use during peak times. Batteries can also be used to lower the power costs of running buildings during the day and especially at the peak times. Analysts believe that Tesla will immediately venture into grid services as soon as its acquisition of SolarCity Corp (NASDAQ:SCTY) is successful.

The two companies have similar goals and combining their resources would therefore be a significant move for renewable energy. However, Tesla can make a significant impact without the acquisition because its software and algorithm can be used to help firms jump over to battery power.