How Tesla Is Taking Advantage of the Texas Energy Crisis

It’s a sunny day in central Texas, where residents can hardly believe that, just four weeks ago, they were in the midst of one of the coldest days in recorded history. The shelves were empty in the hours leading up to the snow storms. It seemed like the early weeks of the pandemic, where desperation took over reason, causing many people to stock up on essentials.

Those first few hours of snowfall were blissful. Families dotted the streets in excitement and wonder to the rare weather spectacle. In this instance, ignorance was truly bliss. Our dependency on unsustainable and poorly-maintained power sources became jarringly apparent, as what brief euphoria quickly fizzled into dismay, fear, andpanic.

In response to recent events, one would expect Texas politicians and those within the energy sector to make a push for the upheaval of a grid that couldn’t weather the extremes of climate change. Instead, the Electric Reliability Council of Texas (ERCOT) has said very little about what steps it plans to take to prepare for future catastrophes.

Tesla Brings Renewable Energy Solutions

Government officials have doggedly pointed fingers at strawman arguments of renewable energy solutions like solar and wind causing the power outage. Now is the time for green companies to work together to counteract these erroneous attempts at stifling the green movement. 

Elon Musk has done exactly that with the announcement of his subsidiary business, Gambit Energy Storage LLC, taking stride in the wake of the energy crisis. According to Bloomberg Green, Tesla’s Gambit project discreetly began in Arlington, Texas and recently announced its plans to create a 100-megawatt storage house for energy. This battery will serve as a backup to 20,000 homes to help mitigate power outages in the unreliable Texas power grid, which is (mis)managed by ERCOT.

Gambit plans on plugging into that grid; however, in a document crafted by Plus Power, the renewable energy storage company facilitating the new project, Tesla’s Gambit project only uses the grid to charge during low energy prices. When solar and wind production are at the lowest, the battery uses the grid. When there is a shortage of electric energy, the storage house discontinues its charge to conserve energy and prevent catastrophe. 

As long as it’s charged, the battery can help jump-start the local electric generators during blackouts or times of high usage. The relationship between the Gambit project and electric grid will help prevent severe power outages like the ones Texas experienced during the winter storm. It will also help during hurricane power outages in the summer.

Interestingly enough, this isn’t the first time Tesla has attempted to reach out to ERCOT in the hopes of working together in the energy sector. A Tesla consultant actually spoke with ERCOT* in May of 2020 to vouch for the efficacy and practicality of installing its batteries as a backup to the grid, which ERCOT approved of last year.

In retrospect, Tesla’s strategic play served as a foretelling to the weather events that would happen not even a year later.

A Timeline of the Tesla Battery

Tesla is primarily known for its part in the electric transportation industry, not in facility-generating powerhouses. Musk’s latest industry move might not come as a surprise to those who actively follow Tesla’s ambitious battery packs, however.

For those who are newer to Tesla’s latest agenda, here’s a timeline of events that led to the company’s momentous expansion into powering buildings:

  • In early 2015, Musk made the announcement of his latest creation, Tesla Powerwall, and Tesla’s new branch called Tesla Energy. Tesla Powerwall, and the larger utility version known as Powerpack, is a stackable, rechargeable, and solar-powered lithium-ion battery.
  • In 2017, Tesla made the international move to Southern Australia, where it tried out its powerplants in full force through Hornsdale Power Reserve, home of the biggest lithium-ion battery on earth. The plant uses wind and solar power in conjunction with the electrical grid to generate and store energy.
  • Then, in 2019, Tesla created a new and improved version of its Powerwall, called Megapack. To put the upgrade into perspective, one Megapack has 200 times the capacity of one Powerwall.

Details on the Gambit project have not been officially announced, and much of the information available is limited. Regardless of the secrecy, the Tesla logo spotted at the site suggests that the battery project incorporates Megapack technology that harnesses a combination of renewable energy solutions and indirect use of fossil fuels via links to the grid.

What Does the Gambit Project Mean for Green Energy?

One of the most notable elements of the Gambit project is its green initiative. The powerhouse plans on implementing a number of green strategies and technologies that improve the quality of the energy sector:

  • Recyclable, nontoxic batteries with recoverable, raw materials
  • A rechargeable battery that releases the energy used from the grid back into the grid when discharged
  • Potential wind and solar charging of batteries during peak times
  • Emission-, fuel-, and combustion-free operating facility
  • No water usage on site, including water vapor

To put this in perspective, let’s take a look a closer look at how these components might influence the energy sector for the better.

Changing the Way Batteries Are Used

Rechargeable batteries aren’t 100% sustainable, but they’re inarguably better for the environment than disposable batteries and outdated electric grids. In fact, research conducted by Uniross, a leader in portable batteries across Europe and the UK, shows that reusable batteries have as much as 32 times less of a negative impact on the environment than their disposable counterparts. This makes them a prospective replacement for unsustainable batteries.

The rechargeable batteries used in Tesla’s latest project are lithium iron phosphate batteries, also known as lithium-ion batteries. Despite the name, lithium metal is not a component within the batteries. Instead, lithium ions give the batteries their rechargeable properties.

Lithium-ion batteries are often used to power electronics, like computers, phones, electric cars, and more. These batteries are thermally stable and have a higher tolerance to mechanical strain than traditional, non-rechargeable batteries, making them a safer backup to the electric grid.

By using these greener batteries to power the electrical grid, the Gambit project sets an example for alternative energy standards across Texas and beyond.

Wind and Solar Power Usage

Though the exact percentages and types of renewable energy involved in the Gambit project aren’t publicly declared yet, it is likely that the project will possess a similar protocol to the Hornsdale Power Reserve.

The Southern Australia project was strategically planned and designed next to Hornsdale Wind Farm. According to the farm’s website, 99 wind turbines have been working with the local and national governments to supply Australia with significant clean energy since 2011. The effects of this initiative include energy production of more than 1,050,000 MWh per year.

To put that in perspective, the power generated from the wind farm is the equivalent of powering 225,000 homes, planting 8.6 million trees, offsetting 535,000 tons of toxic CO2 emissions, and withdrawing 220,000 cars from roadways.

If the Gambit project is only the beginning of Tesla’s project in Texas, it is also probable that wind farms will be a future phase of the project, which will provide additional jobs.

Redefining Fuel, Combustion, and Emissions Usage

Greenhouse gases cause negative alterations to the environment. These gases are byproducts of fossil fuels that, when combusted (or burnt), are released into the air as smoke, harming the atmosphere and posing hazards to ecosystems worldwide.

The known impacts of greenhouse gases have done little to stifle the use of fossil fuels. A stark majority of corporations continue to be unwilling to make necessary changes to conventional practices by reducing their usage of these emissions. This is where Tesla’s latest venture can have a prolonged effect on unsustainable companies.

The Gambit project is 100% free from greenhouse gases, including carbon dioxide (CO2), carbon monoxide (CO), nitrous oxide (N2O), sulfur dioxide (SO2), methane (CH4), and other emissions. The project’s new standard for fossil-free operations can potentially shift our dependency of unsustainable practices to methods that protect the atmosphere and preserve the biodiversity of the earth.

Removing the Need for Excess Water

From droughts to wildfires permeating the earth, our water consumption is strained to keep up with the demands of a changing climate. The catch about water is that it’s not the only resource being used when we turn on the taps. Facilities using wastewater plants are high contributors to energy consumption.

The United States Environmental Protection Agency (EPA) states that municipal governments account for as much as 30-40% of all energy consumption for water utilities. On a wider scale, this is around 2 percent of total energy consumption in the US, or an annual 45 million tons of climate-changing greenhouse gases.

Tesla’s Gambit project introduces technology that is free of energy-draining water facilities. Though this feature may not be applicable to many buildings, especially those that require on-site supervision, it sets the tone for decreasing unnecessary water usage in general.

Controversy with the Gambit Project

As with all attempts at renewable energy, Tesla’s latest project is susceptible to controversy. While the project will undoubtedly bring jobs to the area, the automated facility utilizes a remote monitoring system at all times. Physical inspections will occur at least once every six months.

This suggests that, at least in regards to the standards set by the Environmental, Social, and Corporate Governance (ESG), the project may fall short in the social element of sustainability by not generating many job opportunities. Based on how Tesla conducted the Hornsdale Power Reserve, however, the project is likely to generate more jobs through its partnership with wind farms.

Additionally, rechargeable batteries aren’t a sustainable alternative to the Texas power grid alone. After all, the Gambit project does mildly rely on Texas’s grid for charging its extensive batteries. Wind and solar power are still key alternatives for moving away from outdated grids. In Tesla’s 2019 impact report, the company openly acknowledges these challenges of reaching a net-zero footprint but remains steadfast in achieving 100% renewable energy in the future.

The reliability of Musk’s projects is also worth mentioning. Musk’s technology has been under fire for recent issues, including both quality problems within Tesla, and the recent SpaceX launch, which burst into flames shortly after landing.

The End Justifies the Means

Potential issues might arise through the Gambit project, but Tesla’s new ambition will likely help to pry open the doors to a greener agenda in the Lone Star State. Texas prides itself on its independence, often to its own detriment. The state is also known for its adamant advocacy of the oil and gas industry.

The mere presence of the Gambit project in Texas is a step forward for the independent state, as it reluctantly progresses to greener agendas and technologies that help protect future generations for years to come.