Electricity Shortage Coming In 2 Years: Utility Companies Are Not Ready, But Tesla Is With Three Solutions

Electricity Shortage Coming In 2 Years

On the Lex Fridman podcast, Elon Musk spent some of the time talking about the upcoming electricity shortage and what electricity will be used for in the coming years.

He also said that utility companies need to be ready for this. You could argue that he is saying this so that Tesla energy can sell more Megapacks, but the reality is that the future is going to be electric. Fossil fuels can't be used forever, as oil is a finite resource.

In this sense, I'm glad Elon Musk is deciding to lead the electric transition now, rather than waiting until we have little oil and fossil fuels left. In that sense, Tesla has three solutions:

* Cybertruck as a mobile power source
* Tesla PowerWall for home energy storage
* Tesla Megapack for utility company energy storage

These are very important solutions to the upcoming electricity shortage due to all three being able to store energy for current or future use.

Uses For Electricity

Lex asked Elon Musk what electricity would be used for, and Elon said that even if all the sun's energy were harnessed, it would still be important to care about useful compute per Watt. He thinks that's where things are headed for AI due to a silicon shortage that we have now.

We will have a voltage transform shortage in a year from now.

And in two years, we will have an electricity shortage.

Elon Musk gave a speech at the world gathering of utility companies, telling them that they will need to prepare for three times the electricity usage due to transportation and heating using electricity.

You May Also Be Interested In: Tesla Cybertruck Is Equal to 10 Tesla PowerWalls and is a Mobile Power Source.

Solutions To The Electricity Shortage

In order for everything to go sustainable and electric, you are going to need to triple electricity output. This is, again, due to transportation and heating moving to electricity for usage.

He encouraged utility companies to build more power plants and to find more batteries. Tesla Megapack is the solution to this, and you could argue that Elon is selling his product, but, this is a solution.

There is almost no buffering of power from utility companies. It's all real time. This means there is no extra energy to use in case of extra demand or energy going out.

With battery storage systems like the Tesla Megapack, you have the ability to fill up the energy during the night and have extra energy to provide during the day.

Demand is going to grow for power for energy companies and useful compute for AI systems. In the short term, Elon spoke about transportation and heating being the most important needs in the short term, but in the long term, it will be running compute for AI.

Tesla will most likely get into the heating game, but for now, their biggest solution to this is the Tesla PowerWall and Tesla Megapack.

You can see the full interview here. To skip to the electric discussion, go to 1:10:41.

In Other Tesla News: Cybertruck Seen Hauling SpaceX Rocket Booster.

Do you think there is an upcoming electricity shortage the utility companies need to be prepared for?

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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News. Image Credit, Lex Fridman Podcast, Screenshot