Whatever the reason for the market’s dramatic fall yesterday, it seems the market forgot about it today. Funny how that happens …

Anyway, I spent some time this morning reading about energy, one of my favorite topics these days. Part of that reading was about Tesla. You gotta give it to Elan Musk. That guy is a go-getter, and, perhaps, the singular leader in the move toward renewable energy.

  • US electric carmaker Tesla Motors has unveiled batteries that can power homes and businesses as it attempts to expand beyond its vehicle business.

The battery is not small; it weighs 220 pounds, and it is not cheap; it costs about $3500 and to that, you would need to add the cost of an inverter and installation. Yup, not cheap. Yet, it is here, and the battery represents the next stage in the evolutionary move away from oil. It has long been understood that the only way a power supply relying on renewable energy can be stable and reliable is with a way to store the energy. It seems that day is here, at least in the first stages of being here, as Tesla cranks out storage batteries from its $5- billion factory in the Nevada desert.

  • The race for renewable energy has passed a turning point. The world is now adding more capacity for renewable power each year than coal, natural gas, and oil combined. And there’s no going back. 

This is why Tesla will make money on its new battery, and this is why a host of other companies will soon be announcing their batteries designed for massive storage. A small company out of New Jersey (mPhase Technologies) just recently announced a similar battery to Tesla’s. No price as of yet, but certainly smaller and lighter, coming in at 36 pounds. This battery is of the nanotech variety, rather than the lithium-ion variety.

My guess is that nanotechnology is where the big breakthrough in energy storage will come from. It is cutting edge stuff with all kinds of potential in all kinds of fields.   

  • The price of wind and solar power continues to plummet, and is now on par or cheaper than grid electricity in many areas of the world. 

Yes, we are now approaching critical mass in renewable energy production, the point at which it begins to be profitable, which in capitalism is the point at which an industry begins to grow synergistically. Thus, all the long-term estimates about how quickly the world will turn away from oil and fully rely on renewables are more than likely incorrect.

  • Oil consumption has flat lined for a decade as supplies from all those fracking wells surged. Through the economic boom, the financial crisis, and the recovery now underway, demand peaked in 2004 and has fallen ever since.

Yes, oil consumption has peaked and demand is slowly retreating, and part of that is, simply, more fuel-efficient cars. Better gas mileage is a reason, for sure, but, and back to Tesla, batteries are making a huge difference.

  • Electric vehicles are starting to take off, with global sales of 288,500 units last year, according to BNEF research. While that’s just 0.5 percent of all car sales, it’s more than five times the number in 2011, and manufacturers are preparing for more.

Honda, Toyota, Ford, GM and, yes, Tesla, are making electric cars more cost-effective, as they make batteries more effective. It is all about the storage. So, keep your eye on this, as it will present more and more investment opportunities right here, right now, and down the road, as we will be on this road for some time to come.

Trade in the day; invest in your life …

Trader Ed