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Key Points
- Tesla announced Master Plan 3 at Investor Day on March 1, 2023.
- The plan includes five steps toward a fully sustainable future.
- A renewable energy grid and the transition to electric vehicles result in the most significant reduction of fossil fuel use.
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On March 1, 2023, Elon Musk and other executives presented Master Plan 3 during Tesla Investor Day at the Gigafactory in Texas. Musk released a five-part action plan toward a fully sustainable Earth that requires renewable electrification, less mining, and more recycling of materials.
A 100% renewable energy-powered Earth may seem unattainable, but a study from the Institute for Energy Research provides a helpful analysis supporting Tesla’s plan. The study explains that with great financial investments and large-scale battery storage, it may be possible over time. Researchers emphasize the need for backup storage and cost-effectiveness, but the size and scope of batteries is not defined. Tesla’s plan aligns with the study, making similar statements about the need for backup storage with utility-scale batteries.
Musk made it seem like land is not an issue for his plan and claimed powering the global economy only requires 0.2% of the Earth’s land. However, the study makes the land requirement appear more extensive because solar and wind technologies require much more land than traditional energy sources. For example, two and a half acres are needed per megawatt (MW) of solar power and wind requires one to three acres per turbine on average. In total, solar needs 43.5 acres per MW and 70.64 acres per MW for wind, while natural gas power plants need 12.41 acres per MW.
Over the next few decades, you may expect governmental incentives for sustainable energy to continue encouraging the adoption of green energy. For example, the current incentives available for residential solar panels and electric vehicles (EVs) which provide substantial tax credits. Though the 2019 study claims that powering the Earth with 100% renewable energy is a myth, Tesla’s 2023 Master Plan 3 lays out five steps towards the transition.
Learn more about Tesla’s proposed path toward a sustainable Earth.
Renewable power grid
Tesla claims the key to a renewable grid is stationary wind and solar energy storage. The deployment of utility-scale batteries, like mega Powerwalls, will be the driving force in this initiative. The company’s research claims that 30 terawatt hours (TWH) of renewable power and 240 TWH of energy storage are needed, which requires between $6 and $10 trillion dollars invested over the next two decades. According to Tesla, powering the existing energy grid with renewables would reduce the use of fossil fuels by 35%.
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Switch to electric vehicles
Tesla aims to produce 20 million EVs by 2030. The company has been plagued by slow EV production times and supply chain constraints over the last few years. Master Plan 3 revealed Tesla’s new assembly strategy to make production quicker and more affordable. The new process reduces its factory carbon footprint by 50%. Likely to not low sales of the best-selling Model 3, the presentation did not showcase a new vehicle. However, Musk mentioned a few models are in the works.
Tesla’s research also shows how its EVs produce less harmful emissions throughout the entire lifecycle when compared to gas-powered vehicles. The complete transition from gas-powered vehicles to EVs reduces the use of fossil fuels by 21%. In addition to environmental benefits, EVs need less maintenance than gas cars and save you money on gasoline.
Switch to heat pumps
The next step involves switching from traditional furnaces and air conditioners to heat pumps. Heat pumps pull warm air from outside into your home during cold months. In hot months, it pulls heat from the indoor air to the outside, making your home cooler. Heat pumps are more environmentally friendly because they are powered by electricity instead of fossil fuels. If renewables fuel the energy grid, heat pumps will reduce fossil fuel use by 22%. Musk nonchalantly mentioned the company may manufacture heat pumps in the future.
Sustainable industrial processes
The industry sector is the third highest producer of greenhouse gas emissions behind transportation and electricity. The plan was light on information here, but Tesla claims industrial processes powered by high-temperature heat and hydrogen instead of coal will reduce fossil fuel use by 17%.
Sustainable boats and planes
Since transportation is the highest contributor to greenhouse gas emissions, planes and boats must also be electrified for sustainability. Tesla explained that this transition is difficult because of the limited battery capacity for long hauls but is easily doable for shorter distances. The company is working on improving battery energy density but made no comments that Tesla will manufacture boats and planes.
Tesla assures the path to a fully sustainable Earth is obtainable, but it will take time and financial investments. SaveOnEnergy can help you start your renewable journey. Learn more about EV charging or get a free residential solar system estimate.