Tesla wants to become an electricity supplier in a huge state

Tesla wants to sell electricity directly to consumers in Texas, as evidenced by a statement the company filed with the Public Utilities Commission this month.


Tesla has previously begun construction on a large energy storage facility with a capacity of over 100 megawatts in Angleton, Texas. In addition, Tesla has built several utility-scale energy storage systems around the world, including one east of Los Angeles, another in Monterey, California, and two in Australia. However, Tesla has never acted as a retail electricity supplier. Instead, Tesla's large batteries tend to help other companies produce, store, and consume energy.


In February of this year, Texas experienced a sharp cold snap, as well as several severe storms, as a result of which millions of residents were left without electricity and water for several days. This event went down in history as the Texas Energy Crisis.


The Texas power grid is isolated from the rest of the United States, making it impossible to transfer power from other states. The Texas electrical grid is operated by the Texas Electricity Safety Board (ERCOT). It is a non-profit group that supplies electricity to more than 25 million households in Texas. During the Texas Winter Crisis, Tesla CEO Elon Musk told Twitter that ERCOT did not earn the right to exclusively serve so many homes in Texas.


If Tesla gains approval as a retail electricity supplier in Texas, the company will be used to increase sales and customer service on the staff of Tesla's energy division, which sells solar-powered rooftops.

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