invest money in new technologies
In the early 20th century, the electric utilities were the only players in the industry. Their monopoly created a number of problems for the industry. Building a nationwide grid was a complex process, and GE and Siemens were building massive power plants on a large scale. They had little competition and were unwilling to invest money in new technologies. That situation changed dramatically during the past couple of decades, as technology has made it possible for consumers to produce and store their own electricity.
Increasingly, however, electric utilities are finding themselves challenged by disruptive generation technologies. For example, while utility-scale solar panels feed the grid, distributed energy resources, such as wind and solar, challenge their traditional business model. In addition to onsite solar panels, a growing number of residential customers are installing energy storage devices that produce electricity on their own premises. As a result, the utility may no longer have the monopoly it once enjoyed.
frenzy is a natural progression
While traditional utility models are under threat, the current takeover frenzy is a natural progression. The advent of distributed energy resources threatens to suffocate the traditional monopoly model and leave it in a state of denial. But while most utilities have resisted technological changes, increasing consolidation will give them more political power and market muscle. In addition, the resulting competition will force utility companies to become more efficient and effective.
With increasing awareness of the role of distributed energy resources and the growing popularity of rooftop solar panels, electric utilities are facing a number of challenges. Despite the hefty price tag for clean power, demand is falling and revenues are dwindling. Many people will choose to be grid-independent or grid-tied. But there are many other businesses that can perform the traditional functions of an electric utility. So, it’s not surprising that the electricity business is experiencing a resurgence of competition in the sector.
energy industry grows in the digital age
As the energy industry grows in the digital age, the role of the utility is also changing. While traditional electricity providers have traditionally been the source of electricity, they are increasingly being challenged in their traditional role as suppliers. With the growth of distributed energy resources, the role of an electric utility is changing as well. For example, large wind farms, which produce more energy than half of the world’s electricity, are no longer a source of revenue for the utility.
Smart energy will not only improve the environment, but it will increase profits. Currently, smart energy is a cost-effective way to generate electricity. The company can purchase renewable energy from other sources and store it for later use. With smart energy, a business can make more profit than ever before by using more renewable energy. In the long run, it will reduce its overall costs and boost its profits. While the government is pushing for a green economy, it’s also important to protect the environment.