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Death of the Utilities, Part Two - PwC Report on Australia
Electricity utilities, it says, are about to face their “Kodak moment” and the key is the emergence of rooftop solar, and its ability provide a cheap source of electricity, as well other “enabling” technologies such as storage and smart software.
This, says Mark Coughlin, the power utilities leader for PwC, will fundamentally change the nature of the relationship between utility and the consumer. It will effectively shift the power from the utility to the customer, be they households or businesses, and will challenge the very “right to survive” of the traditional utility.
...
Generators will struggle because of the combined impact of falling demand, and rival energy sources, such as rooftop solar. In Europe, nearly $500 billion has been wiped from the value of utility assets – primarily generators – as a result of the impact of new technologies.
PwC says Australian generators are facing the same headwinds – as can be indicated already by the lack of profits, the write-downs, and the closures and the reassignments in the coal and gas industry. This underpins the reasons for the incumbent industry to try and have mechanisms such as the renewable energy target stopped in their tracks.
“Contracting for long-term demand will become increasingly difficult as time passes given viable alternative sources of supply will almost certainly become available within 10 years,” PwC writes.
This, says Mark Coughlin, the power utilities leader for PwC, will fundamentally change the nature of the relationship between utility and the consumer. It will effectively shift the power from the utility to the customer, be they households or businesses, and will challenge the very “right to survive” of the traditional utility.
...
Generators will struggle because of the combined impact of falling demand, and rival energy sources, such as rooftop solar. In Europe, nearly $500 billion has been wiped from the value of utility assets – primarily generators – as a result of the impact of new technologies.
PwC says Australian generators are facing the same headwinds – as can be indicated already by the lack of profits, the write-downs, and the closures and the reassignments in the coal and gas industry. This underpins the reasons for the incumbent industry to try and have mechanisms such as the renewable energy target stopped in their tracks.
“Contracting for long-term demand will become increasingly difficult as time passes given viable alternative sources of supply will almost certainly become available within 10 years,” PwC writes.
More here: http://reneweconomy.com.au/2014/consumers-big-winners-solarstorage-revolution-93458
