Solar Power To Threaten Conventional Power By 2020

Leonard Hyman & William Tilles for OilPrice.com:  Researchers project that solar power will become cheaper than conventional, fossil fueled electric generating sources by 2020. (The researchers do not say that directly, but their numbers do.) But the news gets even worse for incumbent utilities. By 2030, solar-plus-storage could threaten the economic relevance of their distribution grids by making less necessary the connection with the local electric utility.

In short, more efficient solar panels combined with lower cost battery storage will threaten the economic viability of the entire electric utility distribution grid by 2030. Stated another way, those supposedly low risk, high yielding distribution utilities like Con Ed, for example, may at some point in the not-too-distant future become high risk and no yield equities if this thesis plays out.

If consumers can economically produce, store, and swap electrical energy, they will not need the power grid. They can replicate it with other technologies and at lower costs. That would strand utility assets on a grand scale as an increasing numbers of consumers cut the cord. If they do, electric utility industry revenue will decline sharply, with certain utilities service areas more vulnerable than others. We suspect the rating agencies will take note of this.  Full Article:

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

sonnenBatterie eco

sonnenBatterie eco

Sonnen's mission is to provide clean and affordable energy for all. As the first mainstream grid tied residential energy storage company in the world and with 24,000 sonnenBatterie systems installed worldwide, sonnen is a proven global leader in intelligent energy management solutions. The all-in-one sonnenBatterie smart energy storage solution easily integrates with new and existing solar installations to help homes manage their energy throughout the day-saving money, providing backup power, and maximizing the effective use of solar power day and night. Sonnen has won several awards for its energy innovations, including the 2017 Zayed Future Energy Prize, MIT's Technology Review's 50 Smartest Companies in 2016, Global Cleantech 100 for 2015-2017, Greentech Media's 2016 Grid Edge Award for Innovation, and Cleantech's 2015 Company of the Year Award in both Israel and Europe.