Thoughts on Tesla getting into Energy trading
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Is it really going to be a merchant power trading arm? I thought they just filed to be an REP in Tx. Not sure.
I think they’re setting up a trading desk. Might not be the most active since it’s solar, wind and batteries. I also assume they have multiple batteries since the article you’re referencing only mentions a single 100mw battery which is laughable when you compare to other players.
They are hiring to build a trading desk. My guess is they don't become real spec trading players but go heavy into development and try to become a modern day vertically integrated renewable developer.
Tesla will move to being a developer, energy distributor. So this role will be in place to help them manage the duck curve. Not uncommon for developers.
Anyone who has dealt with a tesla RFP...they sure like to be creative and grind on you.
This info is a few years old but at one point McKinsey was saying that by the middle of the decade off-peak prices could go above on-peak prices on the east coast. Still seems like an aggressive target right now but that would make for a wild change to power trading.
Actually, a good move for them if they hire the right people...it will be their only money making division!
Seriously, this is fairly common in Texas. Walmart does it. Others do as well. If they start trading term in SPP, be prepared for another Gigafactory sized default.
Goiod luck, Elon. Welcome to your worst nightmare.
Elon turns Enron
As a related aside, what is the position of the power experts on the impact of renewables and storage on price?
Just guessing from marginal economics, Renewables will all else held equal lower the price with 0 variable cost. However if a lot of legacy power plants retire and the flakiness of renewables (without battery) could cause an increase in volatility. Battery is a volatility dampener as storage becomes a feasible option rather than turning on a plant.
is this roughly right? What does that spell for the future of power trading?
Oil Quant.
Thats a bottle of scotch question right there.
You can DM me, we can chat and shoot the shit, and Ill give you my opinion/forcast.
The big news came out of MIT, the clock has started. T - 35 years for commerialization.
Thanks DOUG! Sent you a PM
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