Between rooftop solar for homeowners and big companies building microgrids, traditional power utilities are facing a major threat to their traditional monopolistic ways of doing business. We don’t need them nearly so much as we used to. It makes sense for big companies to have control over some or all of their power. Microgrid technology allows companies to easily switch between their own solar, fuel cell, or wind power and that coming from the utility. Smart utilities are gearing up to meet this huge change in distribution of power. Dinosaur utilities will fight it – and lose.
The 3,200 U.S. utilities are already facing what NRG Energy Inc. CEO David Crane calls a “mortal threat” to the industry. Forces including deregulation, green politics and an explosion of rooftop solar and other homemade energy — known as distributed generation — mean a reduction in the fossil-fuel electricity utilities sell.
Microgrids may be the mechanism through which this revolution in clean distributed generation will be carried out – - a portal for leaving the traditional power grid.