Energy Redefined: Batteries as Generators in the Physics of Power

Jesse Peltan, a prominent voice in energy systems and an affiliate of the Abundance Institute, recently challenged conventional understanding of energy terminology, particularly regarding "energy production" and "consumption." In a widely shared social media post, Peltan asserted that, from a physics perspective, "Nothing. Creates. Energy," emphasizing that energy is neither created nor destroyed, but rather directed and converted.

"Energy production" and "energy consumption" are economic terms — not physics terms. We don't actually produce or consume energy. We direct energy.

This perspective aligns with the fundamental law of conservation of energy, a cornerstone of physics stating that the total energy of an isolated system remains constant, merely transforming from one form to another. For instance, a power plant converts the chemical energy in fuel into electrical energy, rather than "producing" new energy. Similarly, when a device "consumes" energy, it converts it into other forms, such as heat or light.

Peltan specifically highlighted the role of batteries within this framework, stating, "Batteries ARE generators." He clarified that while batteries are not electromechanical generators like traditional turbines, they function similarly to chemical-fueled thermal generators by converting chemical potential energy into electrical energy. The key difference, he noted, is that the battery's process involves "fewer steps and is easily reversible." This capability allows batteries to act as crucial buffers and caches, matching supply and demand over time and providing higher peak power with lower latency than comparable thermal generators.

Peltan's background includes significant experience in large-scale energy projects, notably as a co-founder and CTO of HODL Ranch, a developer of industrial Bitcoin mining operations in Texas. His work often involves optimizing energy use and grid interaction, particularly with intermittent renewable sources. His insights frequently touch upon the practical application of energy principles in modern power systems, advocating for a clearer understanding of how energy flows.

This re-framing of energy terminology has significant implications for how energy systems are designed and discussed. By focusing on the efficient direction and conversion of energy, rather than its mythical creation or destruction, the discourse can shift towards optimizing existing resources and technologies like advanced battery storage. Peltan's argument underscores the importance of precise language in fostering innovation and effective solutions for global energy challenges.