Tesla Just Showed Us the Future of Energy

Tesla Just Showed Us the Future of Energy

by | published July 13th, 2017

Back when Tesla Inc. (TSLA) unveiled a test of its new “Powerpacks” – batteries to power homes and businesses – it was clear that the company’s future wasn’t in building cars…

But in providing for a broad spectrum of power sources.

Now, most people still regard lithium-ion batteries as something just to do with cellphones or electric cars.

But now, a major announcement by Tesla indicates the shift to serving large-scale power needs is happening sooner than expected.

This could be an absolute game changer in energy storage…

And could revolutionize energy worldwide.

In Less Than 100 Days, Tesla Will Open the Largest Ever Battery Project

In less than 100 days, the mother of all lithium-ion batteries will be operating in South Australia… charged by renewable energy.

The 129 megawatt hour (MWh) project comprises the world’s largest lithium-ion energy storage system ever – more than 60% larger than an 80 MWh facility at Mira Loma in Ontario, California.

The project combines a huge system designed by Tesla with a nearby 99 turbine wind farm operated by French renewable energy company Neoen. And the prospect may be the most important advance in electricity production in decades.

To add some spice to the announcement, Tesla founder and head Elon Musk pledged that he would provide the project for free if the 100-day commitment could not be met.

That means the massive series of battery packs and inverters – the battery actually encompasses two subsystems each having 198 Tesla “Powerpacks” and 24 inverters – is supposed to be online by the beginning of December.

And the location in South Australia is no accident…

Tesla’s Batteries Will Help Prevent Blackouts

South Australia has been plagued by increasing blackouts. Last year the problem accelerated with residences in some areas left without power for weeks.

The Tesla battery will not completely solve the problem (it’s designed to provide electricity for about 30,000 homes). But an initial success will allow for a rapid expansion of applications.

Now, neither Tesla nor the South Australian state government will directly comment on what the system costs.

However, anecdotal industry information puts it at between $A200 to $A400 million ($155 to $310 million). For his part, Musk has estimated the cost to be “around” $42 million, while Tesla’s battery division head Lyndon Rive had initially out the price tag at about $51 million.

Any of these makes the battery project doable, especially when there are government players interested and worsening power distribution problems.

Without providing any details, South Australia’s Premier Jay Weatherill added on Saturday (July 8) that the entire project would fall “well within” the amount budgeted for renewable energy.

Each Powerpack charges using the renewable energy provided by Neoen and then distributes electricity during the peak demand period. This allows a better operation of the South Australian grid.

What is even more important from the state’s perspective is the ability of the system to inject emergency backup power in the event of a blackout or rolling brownout.

The Mira Loma facility in California has already provided a proof of concept that this works…

This is the “Holy Grail” of Energy Storage

Using Tesla Powerpacks and operated by Southern California Edison, it has been operating flawlessly since being put on line last December. That one is charged by both solar and wind power.

The 80 MWh station is intended to save power generated from renewable sources as well as providing backup against blackouts.

The next two stages in this fascinating development are just as exciting.

First, expanding usage of these huge batteries does not require a physical expansion of existing infrastructure. It is more efficient to place stand-alone stations or substations near power sources and communities being serviced.

While there is a clear advantage to having the leverage of placing additional electricity onto the grid as needed, the requirement does not mean that the traditional economy-of-scale approach is used.

Serializing stations in a spread out network with access to the grid, rather than serializing the equipment in a single location, improves performance.

Second is the “Holy Grail” in all of this. Five or six years ago I began addressing another matter upon which this Tesla project now focuses…

Tesla is Making a Technological Leap Forward

I’m talking about what we in the business call “inversion.”

The inverters contained within the lithium-ion battery array address the single most negative aspect of generating electricity, from wind or solar, for transport.

Wind and solar harvest energy in direct current (DC), but electricity is transported over power lines using alternating current (AC). The switch from one to the other is called “inversion,” and it can waste a third or more of the electricity produced.

Tesla is now working on reducing that amount by integrating their inverters with the rest of the system. Retaining just a fraction of the electricity that would otherwise be lost through inversion will have a major impact on the bottom line.

In fact, solar and wind already have grid parity, i.e., they generate power at the same cost as more traditional sources, in many places globally (including South Australia).

And now, the combination of lithium-ion batteries with improved inversion technology will make them even more cost-effective – and be an absolute game changer.

Please Note: Kent cannot respond to your comments and questions directly. But he can address them in future alerts... so keep an eye on your inbox. If you have a question about your subscription, please email us directly at customerservice@oilandenergyinvestor.com

  1. Cecelus
    October 19th, 2017 at 00:20 | #1

    I’m interested in investment/return
    Info, as well as the sustainability of the battery. Do they have a life span, need replacing, cost effective for consumers?

  2. Denise Montanino
    October 20th, 2017 at 15:16 | #2

    Could I get more info on this.

  3. Drashti Patel
    October 24th, 2017 at 14:55 | #3

    Thank you

  4. Jim Koplin
    October 25th, 2017 at 08:59 | #4

    Send me statistics & prices on lithium ion batteries. Compatible for use in full size motorcycles

  5. kathryn scott
    October 29th, 2017 at 14:53 | #5

    How do I invest?

  6. October 29th, 2017 at 17:00 | #6

    Would these batteries help if our electric grid is knocked off by an EMP? Just curious since we need to have a good back up or protection of our electric grid in the case of EMP attack

  7. Edward Kinney
    November 2nd, 2017 at 14:47 | #7

    They are dumb as hell when they run out of the materials to make these batteries
    Or they keep getting blown up what will you do then
    With oil you can destroy it once its in the consumer s use nw with the batteries yu can vandalize them then you have to pay out ta pocket to replace them
    And then you will have to get them insured
    When you pump ya gas do you have to insure the fucking shit?

  8. November 7th, 2017 at 06:56 | #8

    They said every where there a star..

  9. November 7th, 2017 at 06:58 | #9

    Y is there so many familiar things that I remember.

  10. Paul Dunseith
    November 10th, 2017 at 00:12 | #10

    I bet another reason why they are testing it in Australia is Australia is a warm climate, why not test in a cold climate like Canada or Russia where everyone has the heat turned up? Because heat generation consumes the most power.
    Another problem with cold climates is electric cars don’t do well, sure the technology is improving and you can drive your electric car 100’s of kilometres between charges in the summer time but as soon as winter hits and you turn on the heat how far will your electric car go then, 30 kilometres maybe?

  11. November 17th, 2017 at 00:13 | #11

    We’re do I send my money? I would love to be in on this

  12. November 23rd, 2017 at 10:23 | #12

    Need more info.

  13. November 24th, 2017 at 17:15 | #13

    Yes. Some posters are correct, how and where the resources to build Tesla power packs is important. The idea that these systems may be Regenerative is what scares the traditionalists- those who want to stick their straw in the ground and keep sucking so their profits are protected. To the complainers- if you are not contributing to asking the right questions about how to provide energy to everyone who needs it , then you are the problem.

  14. November 26th, 2017 at 00:03 | #14

    I would like to know more about this opportunity how can I get more information on this renewable energy

  15. November 26th, 2017 at 00:08 | #15

    I think this will be a great opportunity for the world and the planet bring it on Tesla

  16. November 26th, 2017 at 12:39 | #16

    Save my spot

  17. November 29th, 2017 at 01:52 | #17

    I am very much interesting in investing.

  18. December 2nd, 2017 at 10:54 | #18

    How do i invest i would like the information please

  19. December 2nd, 2017 at 10:56 | #19

    Want to invest

  20. December 2nd, 2017 at 22:43 | #20

    Interested in more information about this topic.

  21. Rika Hood
    December 3rd, 2017 at 15:24 | #21

    I am very interested in cost of investment and return. What are the down falls ? Maybe have all 3 sources to insure no outages.

  22. December 4th, 2017 at 09:50 | #22

    What name. Do I invest under? Tesla or lithium batteries? Need something to give to a broker.

  23. dale
    December 6th, 2017 at 11:41 | #23

    Love this technology. Want more info.

  24. Adam Sanjad
    December 7th, 2017 at 20:53 | #24

    great i won’t have to make my diesel truck payment as oil will be obsolete bunch of bull the world would be in more need of oil as population grows the casing for battery are made out oil most of parts made out oil this is bull

  25. Larry Brown
    December 9th, 2017 at 18:15 | #25

    I’m in, and I want to become a dealer

  26. December 11th, 2017 at 23:32 | #26

    Well, did they beat the Dec. deadline? Would like some more information and how it works in colder climates. Also information on maintenance, sustainability, and obsolescence. What companies are in this besides Tesla? What do world reserves on lithium look like and with an increased demand?

  27. Timo Tyler
    December 14th, 2017 at 07:13 | #27

    Educate yourselves folks on the technology before posting ridiculous comments …. first of all the batteries can easily be made to be non-destructible and material supplies to build them can be found all over the world and will never run out …. Secondly Heating our homes does not take the most energy heating
    systems typically run on Gas in Canada ..air conditioning sucks the most power because it runs on electricity and Australia gets damn hot …. finally temperature has nothing to do with Solar and Wind power as it’s the Sun we need and except for perhaps more gray days in Canadian winters we get plenty of sun to store power ….

  28. December 17th, 2017 at 20:33 | #28

    Yes i would love to learn more and invest

  29. Eddie Cobb
    December 19th, 2017 at 23:52 | #29

    How do I invest?? Send me an info packet please to my e-mail

  30. Eddie Cobb
    December 19th, 2017 at 23:52 | #30

    How do I invest?? Send me an info packet please to my e-mail

  31. Noel Grant
    December 20th, 2017 at 07:31 | #31

    How càn I sign up for this invstment?

  32. Mimi Bennett
    December 24th, 2017 at 01:33 | #32

    Yes, I would love more info asap

  33. Gregory Tollison
    December 24th, 2017 at 13:23 | #33

    Send info please

  34. Gregory Tollison
    December 24th, 2017 at 13:26 | #34

    I think it’s great what Tesla’s doing

  35. Hudrell
    December 24th, 2017 at 17:51 | #35

    You can say what you want but those batteries are the real deal. They are the Future, when I was in the military I remember the change over. Back then you bet they blow up on you but they have improved by leaps and bounds. Smart investment.

  36. Steven Garfinkel
    December 25th, 2017 at 11:31 | #36

    Im very interested. How can I invest in this energy project.

  37. December 26th, 2017 at 20:33 | #37

    Don’t oil AND gas go hand in hand?? Normally they come outa the same hole. Atleast in texas anyway. What if canada had no gas because oil was obsolete then I’ll bet it would suck some juice then. As an oilfield worker all my life i have always seen natural gas as a byproduct of drilling for oil. Every one i have and probably will work for would go broke if the had to rely on gas alone for its revenue

  38. cletis Graham
    December 29th, 2017 at 12:44 | #38

    Send me more info please on investing

  39. Said Samman
    January 1st, 2018 at 17:57 | #39

    Very interesting
    At last a solution that would put the Golf Sheikhs out of the richesses they use to push sharia and finance muslim ghetos all over the world
    Been waiting for this technology since beginning of the eighties
    Any additional info about this would be very nice
    Thank you

  40. Mauro enrique perez brito
    January 2nd, 2018 at 04:27 | #40

    Together for a better future

  41. Bob A
    January 2nd, 2018 at 23:06 | #41

    People are endlessly entertaining. I love this country.

  42. January 3rd, 2018 at 23:07 | #42

    I think it will take a little bit longer before anything else takes over for oil, we are pumping and fracking more wells than ever right now, if you think it’s an electrical cars, I’m sorry to tell you that YOU ARE WRONG before looking in to Tesla technology, look in Nikola Technology it’s way better and more substantial.
    Good luck…..

  43. sidney brooks
    January 13th, 2018 at 16:54 | #43

    Yes, I am interested in this investment. This will unable me to take part in the most exciting and dynamic financial activities that I have ever known. Thanks!

  44. John Backes
    January 28th, 2018 at 02:25 | #44

    Is there going to be an IPO?
    Or is it available in a stock market?
    Do you have a financial report for review?

  45. Jamal
    January 28th, 2018 at 15:43 | #45

    Congratulations Tesla for this world class innovative product.
    I look forward to promote in India, fast growing economy.

  46. Kathy M
    January 30th, 2018 at 14:28 | #46

    What will it cost to get in and kind of profits are you expecting?

  47. the engineer
    February 4th, 2018 at 14:31 | #47

    @Michael metcalfe
    buy a generator that runs on natural gas, connect it to your home natural gas, no more worries

  48. Daryle Anderson
    February 4th, 2018 at 22:39 | #48

    Send me info on investing please.

  49. Joyce
    February 5th, 2018 at 04:09 | #49

    Send me more info regarding this investment opportunity.

  50. Pat
    February 8th, 2018 at 11:53 | #50

    I’m living off grid in Alaska an I power my cabin by patoto power which then goes to my 40 way led lighting

  1. No trackbacks yet.