• About
    • Which Energy Mix is this?
  • Climate News Network Archive
  • Contact
The climate news that makes a difference.
No Result
View All Result
The Energy Mix
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
SUBSCRIBE
DONATE
No Result
View All Result
The Energy Mix
No Result
View All Result
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities
  FEATURED
Danske Bank Quits New Fossil Fuel Financing January 23, 2023
Extreme Warming Ahead Even as Worst-Case Scenarios Grow ‘Obsolete’ January 23, 2023
Notley Scorches Federal Just Transition Bill as Fossil CEO Calls for Oilsands Boom January 23, 2023
IRON OXIDE: New Battery Brings Long-Duration Storage to Grids, 750 Jobs to West Virginia January 23, 2023
BREAKING: GFANZ Banks, Investors Pour Hundreds of Billions into Fossil Fuels January 17, 2023
Next
Prev

End Could Be Nigh for Traditional Power Utilities

August 4, 2016
Reading time: 2 minutes

digihanger / Pixabay

digihanger / Pixabay

 
digihanger / Pixabay
digihanger / Pixabay

Grid parity, not the widespread adoption of energy storage, will be the death knell for traditional power utilities, RenewEconomy suggests in a post this week. And if present trends continue, the bells will begin to toll in 2018.

Grid parity, the point where unsubsidized renewables cost no more than conventional electricity generation, “is a clear short signal to innovative traders that the 100-year-old electricity delivery model is about to rapidly unravel,” writes consultant Leon Bateman.

  • The climate news you need. Subscribe now to our engaging new weekly digest.
  • You’ll receive exclusive, never-before-seen-content, distilled and delivered to your inbox every weekend.
  • The Weekender: Succinct, solutions-focused, and designed with the discerning reader in mind.
New!
Subscribe

The initial hype around storage in 2015 was followed by a dose of reality earlier this year, when customers calculated the 17-year payback for a home solar system with a 7-kWh Tesla Powerwall battery, he notes. But the immediate future looks very different, given Bloomberg New Energy Finance’s report last year that solar+storage costs had fallen 20 to 25% per year. If that trend continues, the payback on solar+storage will fall to a much more manageable four to six years by 2018-2019.

And at that point, the finance and investment scene could change very quickly for traditional utilities. “Once a ‘whale’ trader gets a sniff of this once-in-a-lifetime opportunity, the herd will all pile in, crashing utility valuations around the planet in a matter of hours,” he writes. “Make no mistake: this event, which is perfectly foreseeable, poses serious global systemic risk.”

In fact, for commercial and industrial users, digital technologies have already brought paybacks on solar+storage down to the three- to six-year range. “This should be truly terrifying to any incumbent Gentailer [generator-retailer] CEOs and their shareholders,” Bateman warns. “Yet worldwide, most of the individuals managing these soon-to-be-stranded assets are either in extreme self-denial, consciously lying to preserve shareholder value until they have developed a new revenue stream, or just oblivious to the disruptive technology on their doorstep.”

But those responses won’t slow down the rise of new technologies that could be truly transformative for the power sector. “Unless incumbent utilities radically transform their businesses in less than 10 years, they will be relegated to the dustbin of history.”



in Batteries / Storage, Clean Electricity Grid, Climate & Society, Community Climate Finance, Demand & Distribution, Ending Emissions, Renewable Energy, Solar

The latest climate news and analysis, direct to your inbox

Subscribe

Related Posts

United Nations
Air & Marine

Salvage of $20B ‘Floating Time Bomb’ Delayed by Rising Cost of Oil Tankers

January 27, 2023
57
RL0919/wikimedia commons
Finance & Investment

Danske Bank Quits New Fossil Fuel Financing

January 23, 2023
2.2k
@tongbingxue/Twitter
Ending Emissions

Extreme Warming Ahead Even as Worst-Case Scenarios Grow ‘Obsolete’

January 23, 2023
290

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Trending Stories

EcoAnalytics

Albertans Want a Just Transition, Despite Premier’s Grumbling

January 23, 2023
248
United Nations

Salvage of $20B ‘Floating Time Bomb’ Delayed by Rising Cost of Oil Tankers

January 27, 2023
57
RL0919/wikimedia commons

Danske Bank Quits New Fossil Fuel Financing

January 23, 2023
2.2k
@tongbingxue/Twitter

Extreme Warming Ahead Even as Worst-Case Scenarios Grow ‘Obsolete’

January 23, 2023
290
Weirton, WV by Jon Dawson/flickr

IRON OXIDE: New Battery Brings Long-Duration Storage to Grids, 750 Jobs to West Virginia

January 23, 2023
511
Rachel Notley/Facebook

Notley Scorches Federal Just Transition Bill as Fossil CEO Calls for Oilsands Boom

January 23, 2023
271

Recent Posts

Sergio Boscaino/flickr

Dubai Mulls Quitting C40 Cities Over ‘Costly’ Climate Target

January 24, 2023
89
hangela/pixabay

New UK Coal Mine Faces Two Legal Challenges

January 24, 2023
46

Gas Stoves Enter U.S. Climate Culture War, Become ‘Bellwether’ for Industry

January 22, 2023
75
Jeff Hitchcock/flickr.

BREAKING: GFANZ Banks, Investors Pour Hundreds of Billions into Fossil Fuels

January 23, 2023
498

Exxon Had the Right Global Warming Numbers Through Decades of Denial: Study

January 17, 2023
226
willenhallwench / Pixabay

Ontario Greenwashes with ‘Misleading, Illegitimate’ Emission Credits

January 16, 2023
314
Next Post
Wesley Fryer/flickr

Demand Flexibility Can Save Grids $10 Billion Per Year…Or Much More

The Energy Mix - The climate news you need

Copyright 2023 © Energy Mix Productions Inc. All rights reserved.

  • About
  • Contact
  • Privacy Policy and Copyright
  • Cookie Policy

Proudly partnering with…

scf_withtagline
No Result
View All Result
  • Canada
  • UK & Europe
  • Fossil Fuels
  • Ending Emissions
  • Community Climate Finance
  • Clean Electricity Grid
  • Cities & Communities

Copyright 2022 © Smarter Shift Inc. and Energy Mix Productions Inc. All rights reserved.

Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behaviour or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
View preferences
{title} {title} {title}