Connect with us

Hi, what are you looking for?

CleanTechnica

Cars

Tesla Might Cause Grid Defection ‘Tipping Point’ To Occur

Solar Love.

Startups often focus on disrupting markets by having some penetrating insights, new technology or simply a desire to improve upon an existing product or service. Morgan Stanley’s report on Solar Power and Energy Storage contains a fascinating comment about the potential ramifications of Tesla’s focus on developing large numbers of electric batteries.

solar power

Image Credit: Sbharris, Wiki Commons

“Energy storage, when combined with solar power, could disrupt utilities in the US and Europe to the extent customers move to an off-grid approach. We believe Tesla’s energy storage product will be economically viable in parts of the US and Europe, and at a fraction of the cost of current storage alternatives,” it explains on page 1.

They go on to say why Tesla might have such an impact, “This advantage is driven primarily by the company’s very significant scale (Tesla will produce as many cells from its Gigafactory as are currently produced by all worldwide battery manufacturers combined) and integrated manufacturing efficiencies. We project the capital cost of Tesla’s battery will fall from the current $250/kWh to $150/kWh by 2020, whereas its closest competitor will be at a cost of ~$500/kWh,” it says on page 2.

The US Energy and Information Administration estimated that about 6% of the electricity transmitted and distributed each year is lost because of problems with national grid system. Six percent doesn’t sound like much, does it?

However, another estimate translated that number into dollars and came up with an amount for a single year, “Multiplying that number by the national average retail price of electricity for 2005, we can estimate those losses came at a cost to the US economy of just under $19.5 billion.” For ten years, the total lost would be $195 billion dollars, just due to grid  inefficiencies.

In a sense, the grid is also all the power plants connected to it, because they are the sources of the electricity. Coal plants are even less efficient, with only about 35% of the energy in coal becoming electricity after being burned and converted. An eventual grid defection doesn’t look so scary, when you consider that over the long term, we might be saving a lot of money and polluting our air, water and soil much less. Then, of course, there would be less climate change emissions contributing to that global problem.

Grid defection doesn’t have to 100% either; many early adopters could have home energy systems using renewables and remain grid connected in order to have a backup power system.

It’s hard to say when a tipping point might occur, but there have been a number of Americans that have lived off-grid or mostly so for a long time. Over 120 years ago, Charles Brush created his own wind turbine and home battery system.

Originally published on Solar Love. Reproduced with permission.

 
Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
 

Advertisement
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.

Written By

Hello, I have been writing online for some time, and enjoy the outdoors. If you like, you can follow me on Twitter: https://twitter.com/JakeRsol

Comments

You May Also Like

Cars

Remember that so-called “driverless” Tesla crash in Houston that the media went nuts over? Jennifer Sensiba did a very good job covering that for...

Cars

Once again, Tesla broke records and exceeded expectations in the latest quarter. But, the company’s third quarter earnings call was quite different this time...

Cars

Tesla has confirmed it is switching to LFP batteries for all standard range Model Y and Model 3 cars.

Clean Transport

More and more people will be driving EVs in the next 5 years. What are condo associations doing now to plan for EV charging...

Copyright © 2021 CleanTechnica. The content produced by this site is for entertainment purposes only. Opinions and comments published on this site may not be sanctioned by and do not necessarily represent the views of CleanTechnica, its owners, sponsors, affiliates, or subsidiaries.