Jeff Yastine, a prominent financial journalist and Editor at the investment research group Banyan Hill Publishing, recently said that Tesla should change its focus from money-losing automotive operations. He asked the company to focus on the area where the growth bonanza and real profit is being generated in the coming decades – energy storage. Yastine thinks that the focus on energy storage is a revolutionary move. To understand the depth of the opportunity, he explains how the company has resolved one of the biggest energy crisis of Australia in just 100 days.
— Jeff Yastine (@Jeff_Y_Guru) December 8, 2017
Yastine says that a few months back Australian cities were facing power blackouts during the summer season. For example, Sydney with a population of five million people experienced blackouts that spanning to three days in February 2017. Similarly, South Australia and New South Wales region also received frequent power failures. The real problem was too much dependence on solar and wind power that accounted for 40% of the total nation’s power, combined with reduced usage of coal-fired power plants. Therefore, when demand was there for power, coal-fired plants could not meet the demand, especially in summer season.
This is where Tesla entered into the picture and installed its battery storage units that can hold 129 megawatts in 100 days. Since late November 2017, it took installation online and connected with power grid of South Australia. According to a Bloomberg report, the energy storage market around the globe is expected to receive an exponential growth and would grow sixty times from now to 2030. While coming to number, the 2016 5 gigawatt-hours storage will become 300 gigawatt-hours by the end of 2030.
Apart from Tesla, Yastine sees a number of players entered into the industry, including Daimler and many state-run companies. Jeff Yastine thinks that power storage is an appropriate business for Tesla compared to cars as automotive styles need modification over the time and needs constant reinvestment. While coming to the energy storage, the same basic battery can be distributed across the world in a currently less competitive $1.4 trillion marketplace.
Jeff Yastine is the editor of the investment magazine Total Wealth Insider at Banyan Hill. He joined the financial research and publishing firm in the year 2015 and has experience of more than 20 years of expertise in market investment and financial journalism. From 1994 to 2010, he served as a highly successful anchor and journalist at Nightly Business Report of PBS and interviewed stalwarts like Michael Dell, Warren Buffett, and more.
Read more: https://www.linkedin.com/in/jeffyastine