Tesla is here to take the energy utility industry by storm.
The Electric Vehicle automaker recently applied for a license to generate electricity in the UK using its proprietary platform, Autobidder. Founder Elon Musk mentioned that Tesla’s energy division could potentially outgrow its automotive business, and establish itself as a distributed global utility.
How does Autobidder work?
A look at Tesla’s Autobidder UI. Image Source: Tesla
According to Tesla’s website:
“Autobidder provides independent power producers, utilities and capital partners the ability to autonomously monetize battery assets. Autobidder is a real-time trading and control platform that provides value-based asset management and portfolio optimization, enabling owners and operators to configure operational strategies that maximize revenue according to their business objectives and risk preferences.”
TLDR; Autobidder makes use of LIVE trading to allow those trading in the utilities market to bid for a share in electricity-generating tools, thereby getting real effective demand for electricity which will adjust energy prices accordingly.
Has Autobidder been successful?
Autobidder is not new to the world – in fact, it is currently being used in Australia and France with much success, as it has increased market bidding, and “added competition to drive down energy prices”. Using its software’s machine-learning expertise, the platform will also be providing:
- Price forecasting
- Load forecasting
- Generation forecasting
- Dispatch optimisation
- Smart bidding
What does this mean for the future of energy prices?
Image Source: Raw Pixel
As more cities – including Singapore – attempt to go green with cleaner energy utilities, the pressure for more affordable electricity prices increases. With Tesla’s continual expansion of Autobidder into more countries, we could see its integration lead to lower cost of ‘fuel’ for hybrid and electric cars in the future.