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Tesla Energy may be primed to lead the transition from renewables to coal in the US. Before 2020, Tesla's energy department has taken a backseat to its EV automotive sector in previous years. However, the global pandemic has forced the world to consider its available resources for electricity seriously. Now, the glaring benefits and advantages of renewable energy over coal power seem crystal clear.

In the US today, electricity generated from coal is more expensive than that from renewables and gas. At the margin, therefore, coal should be the first energy input to decline in response to low demand while, thanks to continued cost declines, renewables displace expensive and outdated sources of electricity," predicted ARK Invest. 

ARK based its forecast on a 2019 report by the US Energy Information Administration, which claimed that renewable energy consumption surpassed coal last year. There was a 15% drop in coal consumption in 2019 followed by a ~34% decline on a year-over-year basis in the first quarter of 2020 because of the pandemic, lockdowns, and a mild winter, according to ARK.

Tesla Energy Could Grow After Pandemic As World Turns To Renewables For Power https://t.co/MhRvr0tlbV pic.twitter.com/OiyyyZYOVo

— Tesmanian.com (@Tesmanian_com) May 5, 2020

The growth in clean energy consumption may have continued in 2020, considering that renewable power generation exceeded coal plants this year. According to the Institute of Energy Economics and Financial Analysis (IEEFA), renewables generated more power than coal plants in the United States from March 25 to May 3 of this year. It lasted 40 days, the longest streak for renewables thus far. 

With the information above in mind, Tesla Energy seems primed to lead yet another industry that has grown stagnant over the years. The Elon Musk-led company has shown a resurgence of concentration in its energy department, starting with the ramp of Solar Roof V3 installations at the beginning of 2020. 

Tesla Energy has already proven itself in Australia. The company's Hornsdale Power Reserve and Virtual Power Plant projects have received recognition and respect down under. Just recently, a Tesla Powerpack was installed in Kalgoorlie-Boulder in West Australia as part of a Virtual Power Plant initiative in the Goldfields region. At least ten more Powerpacks will be installed throughout the region by the end of the year. 

In the US, Tesla Energy will be installing Tesla Megapacks in Moss Landing California to replace peaker plants in the area. Pacific Gas and Electric Company (PG&E) chose to work with Tesla on the project. The Megapacks likely be an essential part of a Virtual Power Plant in Moss Landing. Tesla's Megapacks will work similarly to the Tesla Powerpack just installed in Kalgoorlie-Boulder in West Australia.

Tesla’s Million Mile Battery & Autobidder Are Keys To Achieving Elon Musk’s Ultimate Goal In His Master Plan https://t.co/5soDu3T8dG pic.twitter.com/S4BHYGXUxI

— Tesmanian.com (@Tesmanian_com) May 21, 2020

Soon after Tesla's Moss Landing project with PG&E was announced, the company released its Autobidder product. This platform will help renewable producers manage the massive amounts of clean energy saved in TSLA's energy storage systems--i.e., Powerwalls, Powerpacks, and Megapacks. 

Autobidder may be the one product that gives Tesla an edge against its competitors in the growing renewable energy market. With Autobidder and the company's other clean energy products--Solarglass Roof V3 and energy storage systems--Tesla has developed an efficient ecosystem for consumers in private and commercial sectors.