Tesla poised to launch electricity supply venture in UK, led by Powerwall batteries

Elon Musk is looking to expand his Tesla empire with a new electricity retailer that will supply power to homes in the UK, mostly – it would appear – with Tesla Powerwall batteries.

Tesla obtained a licence to sell electricity in the UK a couple of years ago, and is now poised to launch the new venture. The news was broken in an uncharacteristically low-key fashion, via a job listing for Tesla Electric, which already supplies power in parts of the US.

The listing called for a new executive who could help manage the company’s foray into the UK market, supplying power and potentially aggregating its customers into virtual power plants (VPPs).

“As part of Tesla’s mission to accelerate the transition to sustainable energy we have launched Tesla Electric,” the ad reads.

“Tesla Electric is Tesla’s retail electricity offering, currently available to Tesla product owners in selected markets globally, such as Texas.”

“We believe strongly that simplifying and improving the customer experience around retail electricity and virtual power plants is necessary to drive significant adoption amongst consumers.

“Delivering a seamless, simple customer experience will ensure that small scale residential flexibility can be fully utilized to support the transition of the entire electricity grid to 100% renewables.”

Tesla Electric currently offers solar systems and its Powerwall home battery technology that helps store solar power and manages EV charging, and sells power back to the grid at times of high demand. The company already has an estimated 10,000 to 20,000 units installed in UK homes according to Energy Live News.

Tesla launched its household supply business in Texas last year, offering drivers who bought its Model 3 between May and June a year of free overnight vehicle charging at home if they signed up with Tesla Electric.

In Australia, Tesla has launched one of the world’s biggest virtual power plants – again using Powerwall battery technology – which it is now seeking to expand.

According to the UK’s the Telegraph, the company’s off-peak rate in Texas is about a third lower than the standard rate from other energy suppliers. If it manages to take off as an energy supplier in the UK it could disrupt the country’s volatile and expensive electricity market.

This latest move comes after the company applied to the UK’s energy regulator to become an electricity generator, with Ofgem granting the licence in June 2020.

Tesla published its so-called “master plan” in April, setting out its plan to decarbonise Earth and “reach a sustainable global energy economy”. Musk, who has skin in the EV and clean energy game, has been calling for a “revolt against the fossil-fuel industry” for years.