With the recent growth of the distributed generation energy market and incentives for customers to produce their own energy and sell excess energy back to the grid, known as Net Energy Metering (NEM) in place in over 40 states, the traditional utility model has come into question. Facing competition from those who generate a portion of their own power and an associated loss in revenues, there is growing speculation that the traditional utility will struggle to survive if it doesn’t adapt to new market conditions. The Edison Electric Institute deemed rooftop solar “disruptive” – a threat to the traditional utility model. Solar leasing continues to expand as customers realize powering their home or business on solar is cost-effective. When utilities or states resist the transition to solar power – these entities become pressured by in-state residents as we’ve seen with the tea party in Georgia and ratepayers in Arizona.
How should utilities adapt to the energy opportunities and challenges presented in today’s market landscape? Which utilities or business models have the best approach in meeting the demands of consumers while creating the most affordable and resilient electricity grid?
Utilities face a range of fundamental problems adapting to opportunities and challenges. Elephants cannot be re-engineered to be cheetahs. The skillsets and experienced of utility subject matter experts and leadership… Read more »
The same issues were faced by the wired telephone industry when the cellular technologies were allowed in the market and they took the same stance as the utility trade group… Read more »
The greatest threat to reliable and affordable electricity today is what it has been since the 1930’s, the occasional heavy-handed federal regulation that makes arbitrary policy to pick winners… Read more »
At Environmental Defense Fund, we expect to see the following changes to the electric utility business model going forward: · Utilities will need to address the operational challenges of higher levels… Read more »
Plenty of thinking happening on this issue – here are a couple additional important recent perspectives. Here is a nice summary of a global survey of utility executives – 40% expect… Read more »
Yes, utilities in the states where they retain the most political power will continue to resist, not just specific changes that promote on-site production, but just about everything. The fact… Read more »