How can a state modernize its electric system when it’s in the hands of vertically integrated monopolies? We offer some thoughts via its comments on a Grid Modernization docket being reviewed by the Minnesota Public Utilities Commission. Background: the grid modernization docket is a relatively new requirement, asking the state’s largest investor-owned utility to explain how … Read More
Communities all over the country are finding ways to break the macro barriers to microgrids. As we flip from a top-down to bottom-up grid management structure, major policy barriers must be lifted in order to expand energy democracy to customers and producers.… Read More
Electric companies seemingly face a business “death spiral” because the 20th century rules for the electric grid make it a challenge to address stagnant energy demand and competition from energy-producing customers. The result is a utility-funded war on solar and other distributed power, and retrenchment on last century’s business model as many utilities try to gain … Read More
On the one hand: Sky-high electricity prices. A 20th century electricity system burning fuel oil and controlled by large monopoly electric utilities. A proposed utility takeover. On the other hand: A new 100% renewable energy standard. Rooftop solar on one of ten homes, saving each customer hundreds of dollars per year. Cost-effective energy storage. A rising interest in locally controlled utilities. Welcome to Hawai’i at the Energy Crossroads.… Read More
Principles, Structure, and Policies of Energy Democracy Energy democracy can best be described as an electricity system that empowers the individuals and communities that have the energy resources of the 21st century (e.g. wind and solar) to economically benefit from their use. It shares the principles of utility 2.0 – an efficient, low- carbon, and flexible … Read More
Unfortunately for utilities, new technology and commercial opportunities in the coming years will only increase the threat to the 1.0 business model. Solar energy is growing exponentially as costs have fallen 28% per year from 2009-2013, and electricity from rooftops is approaching or passing parity with utility prices.63 This is the third of four parts of ILSR’s … Read More
Aggressive state policy and cost reductions for clean energy have created two business model crises for electric utilities: stagnant sales and exponentially rising production from distributed renewable sources. This is the second of four parts of our Beyond Utility 2.0 to Energy Democracy report being published in serial. To see the first post, click here. Download the entire report … Read More
The U.S. electricity system is undergoing the biggest change in its 130-year history. The scale of electricity generation is rapidly shrinking, from coal and nuclear power plants that can power a million homes to solar and wind power plants that power a few to a few hundred nearby homes. Electricity demand has leveled off, so that … Read More
Exciting changes are on the horizon for our century-old utility structure as solar power, energy storage, and electric vehicles open new avenues for utility customers to produce their own power and control their energy use. Utilities are scrambling to remain relevant in this technological firestorm, and energy wonks are envisioning a new business model––Utility 2.0––that keeps … Read More
