Utility Death Spiral - There are many reasons to abandon the
burning of fossil fuel for energy for renewable energy. One of them is purely economic and driven on
economic reality.
"We are witnessing the beginning of a massive shift to a new energy-distribution model – from the 'central station' utility-grid model that goes back to the 1880s to a "widely distributed" model with rooftop solar cells, on-site and grid battery storage, and microgrids…
Last May, Barclays downgraded the entirety of the U.S. electric sector, warning that "a confluence of declining cost trends in distributed solar photovoltaic-power generation and residential scale power storage is likely to disrupt the status quo" and make utility investments less attractive.
Electric utility companies may become “stranded assets”.
"A "stranded asset" is one whose price is vulnerable to a sudden decline when markets belatedly recognize the truth about their underlying value – just as the infamous "subprime mortgages" suddenly lost their value in 2007 to 2008 once investors came to grips with the fact that the borrowers had absolutely no ability to pay off their mortgages,"
FROM:
It's time to accelerate the shift toward a low-carbon future
by AL GORE
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