The real important point from this article for me is that, ‘The die was cast around 1998, when GDP growth and electricity demand growth became “decoupled”’. In other words, for the last 2o years the utilities should have been investing in renewables and they did not. The point being that renewables are easier to turn “off” when you do not need them. If the utilities start investing heavily now in renewables they may survive. It is a horse race at this point.
After rising for 100 years, electricity demand is flat. Utilities are freaking out.
The Tennessee Valley Authority is the latest to be caught short.
The US electricity sector is in a period of unprecedented change and turmoil. Renewable energy prices are falling like crazy. Natural gas production continues its extraordinary surge. Coal, the golden child of the current administration, is headed down the tubes.
In all that bedlam, it’s easy to lose sight of an equally important (if less sexy) trend: Demand for electricity is stagnant.
Thanks to a combination of greater energy efficiency, outsourcing of heavy industry, and customers generating their own power on site, demand for utility power has been flat for 10 years, and most forecasts expect it to stay that way. The die was cast around 1998, when GDP growth and electricity demand growth became “decoupled”:
Go there and read gleefully. More next week.