- Jun 12, 2020 5:06 pm GMT
This new article from Wood Mackenzie is not good news for Electricity Generators who have been relying on increased electricity consumption from EV's and other electrification initiatives, such as home heating applications. Demand for grid wide electricity is decreasing rapidly, which drags down the value of Grid supplied energy and capacity as greater amounts of Behind-the-Meter generation continues to diminish dependencies on traditional, centralized generation. The COVID-19 pandemic has exacerbated this situation. But this is not a good situation for either generators bottom lines or consumers, who depend on reliable electricity service to sustain health and well-being. Reliable electricity is a delicate and complicated function that depends on a complex ecosystem of generators, transmission owners, dedicated personnel from across industry, grid control operators and regulator policies to ensure that "it all works" for everyone's benefit. That balance is now wavering and something must be done to address this matter - the sooner the better. We need Generators, Transmission Owners, Utilities and others to have the resources and sustainable business models they need to commit to providing reliable service at a just and reasonable cost, determined by fair/equitable market mechanisms. Equally important is the need to meet State Energy goals to address climate change or any other objective a State wishes to pursue to the benefit of it's population. Now is not the time to raise electricity prices on consumers through carbon tax policies. I question the wisdom of a bet that relies on winning over political and social support for increasing electricity prices in order to save generators bottom lines, especially now that we know how a pandemic dramatically decreases energy loads and generator balance sheets. Isn't it time to start thinking outside the box for solutions by looking to Renewable Energy Buyers market based solutions: A Capacity Exchange.
Now is the time to make electric service the obvious economic choice for all consumer uses, transportation, heating and other purposes that we rely on daily; I need to go charge my mobile phone now.
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