The big energy news this week is Tesla’s decision to locate its massive Giga Factory in Nevada. On Sept. 11, the Nevada State legislature approved a package of legislation giving Tesla Motors (TSLA) $1.25 billion in tax breaks and low cost electricity to build the batter manufacturing facility.
The Giga Factory could be a real game changer because it is designed to produce enough lithium ion batteries to store one billion watts or a gigawatt of electricity a year. That is enough to power 500,000 electric cars or provide backup electricity for 500,000 homes or business.
Now for the big question that nobody including Tesla Chairman Elon Musk has been asking. Where will the electricity to power those batteries come from? Solar panels probably wouldn’t do it and neither will wind mills. Musk also heads SolarCity (SCTY) the Solar panel company that uses Tesla battery packs for back up.