Solar as a Disruptive Force for Utilities - They're in trouble...

BY PAUL 

BY
PAUL
 

If you want a sneak peek into the minds of utilities worldwide, just take a look at the report “Disruptive Challenges” released this year by the Edison Electric Institute. It’s about the changing electricity market and the disruptive forces of distributed energy for energy utilities. As Travis Bradford explained at our conference two weeks ago, what the utilities are finally realizing is: “We’re in trouble!” Because, “unwinding economies of scale is no fun at all. When you start losing marginal revenue, marginal dollars, but your costs only come down by about 15 cents, it doesn’t take very long for your high, single-digit profit margins to be destroyed. And they’re beginning to get this!”

So you wonder why coal power plants are booming in Europe while they are starting to ‘get’ in the US that it’s not easy to stay afloat as assets get stranded and a majority of 151 coal powered plants have been cancelled or put on hold, for now.

I think it’s time for utilities to reinvent themselves radically, like many companies were forced to in the past