EFFICIENCY IN THE FUTURE OF UTILITIES
Utilities are frightened of a “death spiral.” They shouldn’t be
Steven Nadel, June 10, 2014 (American Council for an Energy Efficient Economy)
“…[For the electric and gas utility industries] the combination of improved energy efficiency with the growing use of solar electric systems and other forms of ‘distributed energy’ has reduced growth rates, which could lead to small declines in future sales. But these potential small declines will not lead to the kind of ‘death spirals’ claimed by some industry alarmists…[but] the industry and their regulators will need to make substantial changes…[The Utility of the Future and the Role of Energy Efficiency] examines three potential sales scenarios, employing increasing levels of energy efficiency, solar electric power and electric vehicles…In our view, a 10% sales decline over 25 years is far lower than what would be required to initiate a death spiral. Under the more likely scenario, sales are essentially flat…[and utilities] will need to pursue new business models if they want to see profit growth…” click here for more
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