31 Jan '14, 2pm

How Many Electric Utilities Does A Market Need?

Maybe Mumbai, India can support five hundred or one thousand MEUs. Microgrids are scalable, and relatively new in consumer applications; we don’t really know what the optimum population each microgrid serves is. The question is: How small can an economically viable electric utility be? Can the electricity business be in thousands of private, entrepreneurial hands, and not with monopolistic, state-run or regulated enterprises? Electricity: No Longer a Natural Monopoly Electricity services from today’s few giant, mostly coal-based and regulated power companies have worked well for over one hundred years. The utilities owe their existence in their present form to several increasingly invalid assumptions, principally that the electricity business is a natural monopoly. The electricity business until recently consisted of “natural monopolies arise where the largest supplier … h...

Full article: http://www.renewableenergyworld.com/rea/news/article/2014...

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