Recently, we learned that the Tesla group, which specializes in the design and production of electric vehicles, has applied, through one of its subsidiaries, to become an electricity supplier in the state of Texas in the United States. The group has also applied to store the energy that will be produced. We'll tell you more about this new Tesla business and its details.
It was on August 16 that the Tesla group sent to the Public Commission of Texas in the United States a PDF document of 33 pages through its subsidiary Tesla Energy Ventures. This document was none other than a request from this subsidiary to become a retail energy supplier in this state.
It is important to understand that the energy market in the State of Texas is a relatively atypical market that is subject to significant deregulation.
More specifically, the REP or energy supplier business here consists of purchasing energy from various producers in order to resell it to consumers. In the State of Texas, there are no less than a hundred different energy producers. The competition is therefore, logically, very strong.
This is why observers who were interested in this announcement hope that the Tesla group will be able to enter this market with a different approach.
It is also important to note that Tesla has made, in parallel, a second application, this time concerning the installation of several battery energy storage centers in Texas. The first project mentions a capacity of 250 megawatts near the Tesla Giga Texas factory located in Austin and the second project concerns 100 megawatts near Houston.
Of course and not surprisingly, we still don't have all the details about these two projects but Elon Musk's recent statements give us a glimpse of hope. Indeed, he has long believed that the main obstacles preventing renewable energies from becoming the majority of the energy mix are, on the one hand, the irregularity of their production and, on the other hand, the problem of storage.
Tesla has been working to find solutions to these two problems with its Solar Roof and Tesla Powerwall, which is also intended for private individuals, as well as several major storage facilities.
If it becomes a supplier, Tesla will be able to implement its entire vision concerning the production, storage and distribution of energy and we can imagine that the group intends to extend its ambition to other states in the USA if it succeeds in Texas. It remains to know the other details of these ambitions which have not been communicated by Tesla.