Tuesday, March 4, 2014

The Coming Decentralization Boom

From the Wall Street Journal yesterday by Jan Hromadko - German Firms Take the Power Back (As electricity costs rise, energy-hungry companies have a growing incentive to go off the grid):

"Every sixth company in Europe's largest economy now generate its own electricity, roughly 50% more than one year ago, according to Germany's Chamber of Commerce and Industry.  They range from rural family-owned companies to a wast Dow Chemical Co. plant that consumes 1% of the country's electricity."

It will be increasing to watch the decentralization trend in the U.S. - for both the water and energy sectors.  The instability of our water resource systems could produce an environemnt of extensive reuse of water - right down to the grey water that departs your washing machine.  Mini-wind farms, solar panels on every roof, micro-natural gas turbines, etc. could push companies and people further off the grid.

All of this is bad for water and electricity providers - fewer customers, plunging revenue, and high fixed costs based on assumptions that look like that past instead of the present and future.  A decentralization boom will mean adaptation for many parts of the water and energy sector.

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