This hurt Tesla’s stock price. Did people think no one else would enter the market? Although it’s tough to compete with a company that has a direct line to the president, and pays negative taxes. From Reuters:
General Electric Co (GE.N) wants to be a “sizable” player in the market for systems that store energy to manage power volatility, a sector the company expects to quadruple to $6 billion by 2020, the head of GE’s energy storage business told Reuters.
Demand for industrial battery systems is being driven by increasing reliance on intermittent energy sources such as wind and solar power and the potential to add energy to the grid quickly when power needs spike.
This need has attracted a wide range of companies, including Elon Musk’s Tesla Motors Inc (TSLA.O), which said in April it plans to package batteries for use for utilities as well as homes and businesses.
“We believe in the space and its ability to grow,” Jeff Wyatt, GE’s general manager for energy storage, said in a recent interview. “We think we can be a sizable player within it, and that’s really what we’re intending to do.”
GE over the past year has overhauled its approach to the energy storage market, as it saw weaker demand for the battery it developed.
Now Fairfield, Connecticut-based GE is repositioning itself as a one-stop shop for power producers seeking to install energy storage systems, offering inverters, control systems, software as well as financing options.
Earlier this year, it scaled back production of its own Durathon industrial batteries, reducing its manufacturing workforce from 200 to 50 at the Schenectady, New York plant where the battery is made. The company is focused on improving Durathon’s longevity, including managing its chemical degradation.
As part of its new energy storage package, GE is offering customers the option to install lithium-ion batteries made by other companies.
This is great news. GE would not get into a business that doesn’t have a BIG future.