Issue link: https://nebusinessmedia.uberflip.com/i/479398
www.CTGreenGuide.com Fall 2014 • Connecticut Green Guide 33 No Electric Bill? Technology allows businesses, residents to unplug from grid By Jon gordon R apid improvements in small, distributed power technologies such as solar and microturbines — coupled with rapidly improving battery storage technologies — may soon make it economically feasible for businesses and consumers to disconnect from the electric power grid and their monthly electric bills. A recent study by the Rocky Mountain Institute shows it already may be economical for certain consumers to disconnect from the electric grid in states like Hawaii with very high electric costs, and it may become eco- nomical in parts of New England in the next 10 years. Technological advancements in distributed renewable generation and storage technologies will reshape electric power generation and distribution as we know it, just as technology has reshaped other regulated industries like telephone and cable. The New York Times recently reported that nearly 40 percent of households no longer have a landline and rely exclusively on cell phone service. This would have seemed unimaginable 20 years ago. A similar sea change is underway in the power industry. Thanks to improvements in solar and battery technology, businesses and homeowners alike could generate much of their power needs through a combination of solar panels and batteries. Nearly half of an electric consumer's electric bill in Connecticut goes toward the delivery charge, which pays for the regulated electric distribution system of poles and wires. In order to consider disconnecting from the grid entirely and have no electric bill, a residential customer would likely need a microturbine generator along with batteries and solar to ensure the kind of reliability under all conditions that consumers currently take for granted from the electric power grid. In reality, disconnecting from the electric grid would be a very complicated decision for most consumers, who may not be ready to take responsi- bility for their own electric reliability and may not be will- ing to make investments in their own energy infrastruc- ture that may take several years to earn a payback. Meanwhile, the electric utilities can't wait to invest in their own aging infrastructure. It is nearly impossible to predict accurately how many consumers will leave the grid. Utilities must make decisions today on investments in power delivery infrastructure to maintain the reliability of the existing power grid that will serve consumers for the next 30-40 years — and consumers who remain on the electric grid will be paying for these investments. As a result, delivery charges for electricity could skyrocket if there is actually a mass consumer exodus from the grid. The revolution in renewables will change the power industry. Anticipating technological and market chang- es — and effectively managing that change to maxi- mize benefits for everyone — will be a huge challenge for utilities, policy makers, and consumers alike. Jon Gordon is an independent energy policy consultant and a 28-year veteran of the energy industry, working on issues ranging from power markets to regulation to legislative affairs. Gordon serves on the board of rEEBA (renewable Energy & Efficiency Business Association).