Tesla Applies to Become an Electricity Provider in Texas

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Tesla has applied to become a Texas electricity supplier. The decision stems from a desire to improve the overall state of affairs in the state's energy market, which has deteriorated since the winter storm in February 2021. 

Tesla intends to sell electricity directly to consumers in Texas, as evidenced by its filing this month with the State Public Utilities Commission. The application was filed by a new Tesla subsidiary called Tesla Energy Ventures, according to Texas Monthly. Possible approval of the application is expected in November.

The filing in mid-August followed after it became known in March that the manufacturer had begun construction of a large energy storage facility. Tesla's subsidiary, registered as Gambit Energy Storage LLC, is building over 100 megawatts of energy storage in Angleton, Texas, about 40 miles south of Houston. A battery of this size could power about 20,000 homes with the HVAC turned on.

Tesla also told the state's grid operator that it wants to build yet another giant battery pack for utilities that will serve the state's wholesale electricity companies. The 250-megawatt battery will be located near Giga Texas, Austin.

In February, winter storms hit Texas and left millions of people without electricity for several days. Tesla CEO Elon Musk was one of those impacted, as he and his family were there. Also, the construction of Giga Texas was stopped for several days. The company became one of those who helped the local population by donating and delivering food and essentials. All of this likely prompted the company to help the state bolster its energy market.

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