The Death Of Big Power

Feb 27 2013 @ 10:16am

David Roberts sees decentralization as the major “metatrend” affecting the energy sector:

[U]tilities used to be in the business of generating power at big power plants and then sending it to consumers over one-way lines for a set price. That basic “hub and spoke” model is rapidly becoming obsolete. There are more and more small-scale power generators and power storage nodes on the network, sending power back and forth in massively parallel fashion. Utilities cannot hope to centrally manage all those transactions. They will be forced, whether they like it or not, to move to what’s known among nerds as a more “transactive” model, in which their main job is to manage power markets, to dynamically price (value) power so that the market can react accordingly.