In Shift to Distributed Power, Utilities’ Loss Could be Customers’ Gain
Losses to U.S. utilities through 2025 could represent a $48 billion savings opportunity for electricity customers, the Institute for Local Self-Reliance reported this week.
“A new report from Accenture highlighted a potential revenue loss for U.S. utilities of $48 billion per year by 2025 due to distributed solar and energy efficiency,” Farrell writes. “But where does that money go? If we pursue a democratic energy system as outlined in ILSR’s new report (also released last week), it goes right into the pockets of utility customers.”
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With electricity demand falling and competitive renewable energy sources coming on strong, Farrell notes that many utilities are fighting to protect their traditional, centralized operations. Others are participating in “a business model discussion inside and outside of utilities that would allow electric companies to accommodate flat energy demand and rising customer energy production.”
“It’s good policy, focused on shifting the principles of the electricity system to a low-carbon, flexible, and efficient one as well as shifting utility incentives to achieve these outcomes.”