Connect with us

Hi, what are you looking for?

CleanTechnica

Cars

Tesla Poised To Deliver Knockout Punch To Fossil Fuels In The Next Decade

Originally published on EVANNEX.

Tesla Motors [NASDAQ: TSLA] has a stated mission — to accelerate the advent of sustainable energy — that flies directly in the face of carbon-emitting fossil fuels. To achieve this mission, Tesla has expanded its business model beyond just electric vehicles. Last year, it introduced Tesla Energy, a stationary storage division that offers backup power with its lithium-ion battery technology employed at home (Powerwall) and/or via commercial or grid (Powerpack) applications. Stationary battery storage provides the missing piece enabling solar panels to use backup storage at night to provide power 24/7.

In addition, Tesla recently announced it’s combining with SolarCity. In all, electric cars, battery storage, and solar power could be a potent combination in the fight to replace fossil fuels. That said, Bloomberg* now reports that the world is nearing “peak fossil fuels for electricity [as] coal and gas will begin their terminal decline in less than a decade, according to a new BNEF analysis… we’re [now] finding cheaper alternatives. Demand is peaking ahead of schedule because electric cars and affordable battery storage for renewable power are arriving faster than expected.”

Source: Bloomberg*

And, renewable energy sources are gaining ground fast: “even rock-bottom [gas] prices won’t be enough to derail a rapid global transition toward renewable energy. ‘You can’t fight the future,’ said Seb Henbest, the report’s lead author. ‘The economics are increasingly locked in.’ The peak year for coal, gas, and oil: 2025. Humanity’s demand for electricity is still rising, and investments in fossil fuels will add up to $2.1 trillion through 2040. But that will be dwarfed by $7.8 trillion invested in renewables, including $3.4 trillion for solar.”

Source: Bloomberg*

And take note of battery storage: “The pink stuff on the top of this chart is new this year. It represents flexible capacity—technology, primarily large batteries for the home and grid, that smooths out the peaks and valleys inherent in wind and solar power. By 2028, batteries will be as ubiquitous as rooftop solar is today.”

Source: Tesla

However, can solar power compete on price with fossil fuels? “The chart below is arguably the most important chart in energy markets. It describes a pattern so consistent, and so powerful, that industries set their clocks by it. It’s the beautiful math of declining solar costs. The chart is on a logarithmic scale, so the declines are even more profound than at first glance. For every doubling in the world’s solar panels, costs fall by 26 percent, a number known as solar’s ‘learning rate.’ Solar is a technology, not a fuel, and as such it gets cheaper and more efficient over time. This is the formula that’s driving the energy revolution. ”

Source: Bloomberg*

In addition, electric vehicles will further threaten fossil fuels: “the sudden rise of electric cars is on the verge of disrupting oil markets as well, and that has profound implications… The charts below show the soaring demand for battery capacity for cars and the difference that EVs will make to power demand worldwide. The adoption of electric cars will vary by country and continent, but overall they’ll add 8 percent to humanity’s total electricity use by 2040, BNEF found.”

Source: Bloomberg*

Furthermore, “Renewable energy and electric cars create a virtuous cycle of demand growth… The scale-up of electric cars increases demand for renewable energy and drives down the cost of batteries. And as those costs fall, batteries can increasingly be used to store solar power.”

Source: Bloomberg*

Looking at Bloomberg’s analysis it appears Tesla’s triple threat of electric cars, battery storage, and solar power all have the ability to put enormous pressure on fossil fuels in the coming decade. Add in the potential for autonomous vehicles coupled with car sharing, as described in Elon Musk’s recent Tesla Master Plan sequel, and it’s clear that change is coming. Still need convincing? Watch this fascinating, jaw-dropping video on the potential of these catalysts, all part of Tesla’s latest Master Plan, to disrupt fossil fuels as the dominant energy source in the (very) near future.

After reviewing the findings from Bloomberg New Energy Finance and predictions made in the video above, it’s clear that Tesla is poised to deliver a knock-out punch to fossil fuels in the next decade.

*Source: Bloomberg / Bloomberg New Energy Finance (BNEF)

Reprinted with permission.


Appreciate CleanTechnica’s originality? Consider becoming a CleanTechnica Member, Supporter, Technician, or Ambassador — or a patron on Patreon.
 
 
Have a tip for CleanTechnica, want to advertise, or want to suggest a guest for our CleanTech Talk podcast? Contact us here.
Written By

Matt is all about Tesla. He’s a TSLA investor, and he loves driving the family's Model 3, Model S, and Model X company cars. As co-founder of EVANNEX, a family business specializing in aftermarket Tesla accessories, he’s served as a contributor/editor of Electric Vehicle University (EVU) and the Owning Model S and Getting Ready for Model 3 books. He writes daily about Tesla and you can follow his work on the EVANNEX blog.

Comments

#1 most loved electric vehicle, solar energy, and battery news & analysis site in the world.

 

Support our work today!

Advertisement

Power CleanTechnica: $3/Month

Tesla News Solar News EV News Data Reports

Advertisement

EV Sales Charts, Graphs, & Stats

Advertisement

Our Electric Car Driver Report

30 Electric Car Benefits

Tesla Model 3 Video

Renewable Energy 101 In Depth

solar power facts

Tesla News

EV Reviews

Home Efficiency

You May Also Like

Carbon Pricing

Originally posted on EVANNEX. Elon Musk is working hard on a 360-degree clean energy strategy at Tesla. With solar, battery storage, and electric cars, Tesla...

Uncategorized

Logging another win in the safety game, electric vehicle owners are putting in a lot fewer injury claims than owners of identical non-electric vehicles...

Cars

Originally posted on EVANNEX. by Charles Morris Around the time Tesla announced plans to build the Shanghai Gigafactory, China’s government rolled out the red carpet....

Cars

In a move that proves that Tesla is the leader of the auto industry in at least one sense, legacy automakers — Ford, Audi,...

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.