Once again, Tesla leads the way, this time with a distributed power plant

Enrique Dans
Enrique Dans
Published in
4 min readJun 27, 2022

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IMAGE: A drone view of a neighborhood with many roofs covered with solar panels
IMAGE: Jeremy Bezanger — Unsplash

The launch of a virtual or distributed power plant installation in California by Tesla in collaboration with the Pacific Gas & Electric Company, illustrates a trend in energy management: more and more consumers are opting for the installation of solar panels on their homes — in California and many other states and countries it is now mandatory to incorporate them in all new construction, while more and more people interested in energy self-sufficiency are installing batteries at the same time.

For those who own a property suitable for this purpose, the new model is base don solar panels on the roof, heat pumps, an electric car in the garage and batteries in the basement. This model, which for the moment cannot be expected to provide a guaranteed return on the not-inconsiderable investment any time soon, has a counterpart based on aggregation: if you undertake an installation of this type, you are very clear about how much electricity you have and how much you do not, but if, for example, your entire urbanization does it, you will have a much higher level of self-sufficiency based on the use of surpluses not consumed by each of the households.

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Enrique Dans
Enrique Dans

Professor of Innovation at IE Business School and blogger (in English here and in Spanish at enriquedans.com)