Tesla Given Permission to Become a UK Energy Supplier

Tesla, the industry-leading American electric carmaker, has officially received approval as an electricity generator in the United Kingdom.


There is no clear explanation from the company regarding the purpose of the generation licence. Still, reports allege that it will be used to introduce its Autobidder platform that will autonomously monetise battery storage assets.


Ofgem provided a statement regarding the approval, saying that Tesla has been granted the electricity generation licence on 12 June 2020, with a registered office in West Drayton.


Tesla’s plans in the UK


Tesla, a tech giant in the US that has amassed a substantial following for its ingenuity, applied for the licence in April 2020.


As per Ofgem’s statement, Tesla is now allowed to generate electricity across Great Britain, within a Renewable Energy Zone, and in GB’s adjacent territorial sea. It grants the company the right to deliver supply to premises or enable the supply for consumers within the UK and its jurisdiction.

Although primarily an automotive manufacturer, Tesla is quickly developing into a global utility service provider. Elon Musk, the owner of the large firm, believes that its energy division Tesla Energy could outgrow its car-making business shortly.


The real reason for securing the licence remains unclear as of writing. The company is yet to deploy solar power like it has been doing in the US, although it has already distributed energy storage devices across the UK.


Amazon added energy storage systems manufactured by Tesla to its UK distribution centres. Additionally, a similar system has been deployed at the Machester Science Park.


Several experts and analysts have noted that the tech powerhouse could be using the licence to develop virtual power plants in the country. Such establishments will be controlled via its Autobidder software, which is a real-time control and trading platform that allows independent generators and other key players to monetise their battery resources.


The energy sector was taken by surprise when it was announced that Tesla Energy’s sales director Evan Rice applied to the Gas and Electricity Markets Authority for the ‘generation licence’. The firm has not adopted the same strategy in the US and it has also kept mum about the recent decision to enter the UK market officially.


Tesla Energy’s potential


Tesla Energy hits a milestone with the recent approval, seeing that it has a huge potential to go big across the globe. This arm is largely supported by two innovations primitive to the company: batteries and software. It explains why the company’s big battery at Hornsdale Power Reserve in South Australia has been successful.

The humongous Powerpack farm in Australia is controlled via the Autobidder platform, the same scheme that Tesla is planning to deploy in the UK.


The Autobidder software delivers portfolio optimisation and value-based management of assets for operators and owners. It allows energy generators to upgrade their operational game plan to maximise revenues. As observed in South Australia, the technology has enabled a reduction in energy prices through competition prompted by market bidding.


In 2018, Tesla helped the Island Nation of Samoa to transform its grid to 100% renewable energy through its Grid Controller technology. It allowed the country to secure real-time control of the grid’s reliability, stability, and security. A Tasmanian report claimed that the Autobidder software is an advanced version of this technology.


The Autobidder platform is said to have a lot of potential to optimise revenues and stabilise energy grids. The lower cost of energy could also further attract consumers to switch to Tesla’s innovation and offers.


Some of the energy sector’s experts reckon that Tesla will launch virtual power plants and its innovative vehicle-to-grid technology. This system allows the firm’s fleet to be utilised as batteries to support the electricity grid in meeting demands.


Reports also speculate that Tesla is eyeing an expansion of its solar roof tiles. It looks like the company is preparing an international rollout of the said technology.


Additionally, the tech firm has ties to Octopus Energy, offering special electricity tariffs for Tesla owners.