Towards The New Grid Paradigm

ChandlerThis article highlights some of the challenges being faced in figuring out how to sell and monetize electricity.  It is in large part about a meta-study done by the Rocky Mountain Institute (RMI) that looks at the costs and benefits of rooftop solar energy for which there is little consensus.   Distributed energy like rooftop solar is worrying people.  I feel just the opposite however, I think it is good that we are looking at this.  We are reaching a tipping point where a new way of managing the utility grid is going to emerge.  It will be a market driven approach whereby all stakeholders will bid into a real time market in near real time.  Central planning and trying to project will no longer be necessary.  Because there will always be a willing seller and a willing buyer at some price, all the pricing arguments about what ought to be will be replaced by what is.  In other words, the people who study things will no longer be asking the question, “what prices should we impose.”  Instead they will be asking the question, “why did the pricing distribution look like this.”

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This entry was posted in Markets and Subsidies, New Energy Paradigm, Path to a New Paradigm and tagged , , , , , . Bookmark the permalink.

One Response to Towards The New Grid Paradigm

  1. finecadmin says:

    “why did the pricing distribution look like” …Enron? Because “a market driven approach” had one stakeholder that could still screw the others. I agree with your scenario in the long term, but there will be a painful transition period in the short term, don’t know how short. Solar City, for one, is betting that the long term is a long ways away.

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