Competition from new players will drive innovation in the changing electric utility market
The blogosphere is abuzz with plans to create a new electric utility business model, one that reduces energy costs and pollution. The power company of the future, many experts say, will feature new electricity rate structures that reward efficiency, finance and integrate local, on-site power generation (like rooftop solar), and put more smart meters in the system to help us better understand and control our energy use.
Such changes could indeed help reduce consumer costs and pollution, yet they ignore larger opportunities to advance innovation and efficiency. Missing in most Utility 2.0 discussions is any real debate about the emerging electricity-services market, filled with hundreds of innovative entrepreneurs who want to profitably provide consumer services that revolutionize how we use and interact with electricity. Instead, most experts simply assume the monopoly structure of the past several decades will continue. The introduction of new players into the electricity market, however, challenges that assumption. Read More