Jim Cramer

Tesla Energy Could Grow After Pandemic As World Turns To Renewables For Power


Tesla Energy could see exponential growth after the pandemic. As the lockdowns continue across the globe, more countries realize the advantages of renewable energy.

The pandemic has given people the time to study and test the capabilities of renewables as main power sources. Recently in the United States, more power was generated by renewables than coal from March 25 up until the latest recorded day, May 3, reported the Institute of Energy Economics and Financial Analysis (IEEFA). The IEEFA reported that it was the longest streak for renewables, lasting at least 40 days. The last record was 38 days. 

The IEEFA attributed the rise in renewables for electricity generation to some factors, including reduced gas prices—which some will argue should have increased coal-generated power, not the opposite. However, natural gas and coal prices have not dropped as much as oil. 

It appears that lockdowns have proven that renewables are a more cost-efficient way of managing utilities because solar and wind farms cost less to operate than power from fossil fuel plants. As a result, the IEEFA predicted that renewable power generation would surpass coal-powered electricity sources as early as this year. The organization initially forecasted renewables would overtake coal by 2021, but the pandemic seems to have accelerated the transition. 

The United States wasn’t the only country moving towards renewable power generation either. Australia, Singapore, and Indonesia have plans of going green with their 9GW Asian Renewable Energy Hub, reported Renew Economy. The project will be based in Western Australia in the Pilbara region and consists of 1,743 wind turbines producing an estimated 7GW of energy and about 2GW from solar panels. Australia will export green energy to Indonesia and Singapore through subsea power cables. 

Tesla Energy's Stake In A Growing Renewable Energy Industry

Tesla Energy is well-positioned for the global energy industry moving towards renewables. Its Powerwalls, Powerpacks, and Megapacks have already been tested in Australia and proven their cost efficiencies and advantages--through the Hornsdale Power Reserve and virtual power plant projects. Tesla Solar has also started to gain traction in Australia. 

In the United States, Tesla Solar has taken the lead. The company was already ramping its solar roof V3 in the United States at the beginning of the year. Before the virus spread throughout the globe, Elon Musk had predicted that Tesla could start delivering Solar Roof V3 internationally before the end of 2020. Tesla still managed to reach capacity for an installation rate of 1,000 homes a week during Q1 2020 despite the pandemic. 

Tesla Energy may soon prove its muster in Monterey County, California. The Monterey County Planning Commission gave Tesla and PG&E the green light to move forward with their energy storage facility, which will pump power to the Moss Landing Power Plant.

The pandemic may have stalled installations of Solar Roof V3 and postponed Tesla's Moss Landing project with PG&E for now. However, the world will move on from this crisis. Then Tesla Energy will continue its projects and grow. 

Featured Image Credit: livingmodern/Instagram

About the Author

Ma. Claribelle Deveza

Ma. Claribelle Deveza

Longtime writer and news/book editor. Writing about Tesla allows me to contribute something good to the world, while doing something I love.

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