Business models are evolving to suit a shifting industry landscape.
The next decade will bring serious disruption to the utility industry. But with cooperation from regulators and legislators, utility companies will be able to shift their business models to capture significant value—both in existing businesses and emerging ones.
Public-private collaboration to protect our infrastructure.
Smart grid technologies bring a host of cyber security considerations that need to be addressed throughout the transmission and distribution domain—and even into the customer’s home. In the second of two exclusive articles, Department of Energy authors team up with industry experts to provide a path forward for securing the smart grid.
Shaping system transformation.
New technologies—and new expectations—require taking a fresh look at the institutions and practices that have provided reliable electricity for the past century. Collective action is needed to define the key attributes of a future grid and then to take the more difficult next step—adapting our processes and institutions to align with that future vision. A thoughtful approach will allow America to capture the potential value that’s offered by sweeping changes in technologies and policies.
Protecting smart systems against cyber threats.
Smart grid technologies bring a host of cyber security considerations that need to be addressed throughout the T&D domain—and even into the customer’s home. In this exclusive report, Department of Energy authors team up with industry experts to examine how to deal with the changes and challenges of securing the smart grid.
Cap-ex plans raise the stakes for utility mergers.
Investors historically have been skeptical about merger synergies in utility mergers, assuming that regulators will insist that most or all economic benefits flow to customers. However, recent transactions suggest utilities are taking a different approach to valuing synergies that might strengthen the case for mergers — not just for the merging parties, but also for investors and regulators.
Not your father’s feed-in tariff.
The industry has struggled to craft a feed-in-tariff (FiT) structure that works for solar generators and utility customers, with mixed success. But now, the California Public Utility Commission might have found an approach that other states can replicate. CPUC’s FiT mechanism recognizes the value proposition of solar energy, and uses market forces to drive economic improvements, especially for distributed solar projects.
(May 2011) Florida Power & Light unveils hybrid solar power plant; SECO selects Sensus for smart grid technology; Lockheed to implement Con Edison energy efficiency programs; Elster partners with SAIC to deliver comprehensive smart grid solutions; Columbia Power Technologies deploys wavepower prototype system; plus contracts and announcements from GE, Siemens, Verizon Wireless, DT, Xcel, Tenaska Solar and others.
Progress Energy to merge with Duke; ArcLight sells Georgia plants; GE and Mitsubishi UFJ buy into Alta Wind I; plus mergers, acquisitions and securities issues involving CenterPoint, PSEG, Calpine, NRG, Commonwealth Edison and others.
Solar and wind developers learn to shift project risk to the grid.
As Google says, “the wind cries for transmission.” But the opposite is true as well: without new wind and solar energy projects, we would not need to build so many new transmission lines. Each side needs the other, yet neither dares declare too soon, and risk weakening its bargaining position. That is, until one utility in California found a way to break the impasse, with each side scratching the other’s back — thus putting to rest the age-old question, “Which came first, the . . . ?”
Waste fuels struggle despite coal’s decline.
Fuel supply might be the biggest barrier to scaling-up biomass power generation, but it’s by no means the only problem. Utility projects to repower coal-fired plants face permitting challenges, ballooning technology costs and strained economics. Some owners are giving up the fight.