David Stringer from Royal Dutch Shell thinks wind and solar will provide almost half the world’s electricity by 2050. Are utility firms under threat yet, he asks in a future world where coal and gas no longer dominate. We could not have had this discussion five years ago. David has a good source in the form of Bloomberg LP’s primary research service on energy transition.
Are Utility Firms Under Threat by Renewables or Batteries
The wheel has turned. Batteries have the option to take their power from the grid while wind and solar need batteries to perform. In fact, renewables can’t work without battery storage except to a very limited extent.
Mary Powell, chief executive officer of Green Mountain Power Corp told David “We think storage can be the leapfrog technology. That’s what’s really needed in a world that’s focused on dramatic climate change.” Her company has been making progress with 2,000 Tesla storage batteries installed. It seems she already knows the days of large, central power stations are shortening.
It’s the Killer App to Move Away from Bulk Delivery Systems
“It’s the killer app in a vision to move away from bulk delivery systems.” she told the Royal Dutch Shell reporter on August 5, 2019. “There a shift towards community-, home-, and business-based energy systems”.
Are utility firms under threat yet from this step change? It seems likely, now we have batteries serving as a bridge between smaller, intermittent renewable sources and distribution grids. Smart energy investments by oil giants are beginning to show this trend. David says Royal Dutch Shell Plc is spending $2 billion a year on these technologies through its New Energies division.
Someone must have told them there’s wind and solar power in batteries even when the elements fail to perform. So are utility firms under threat from our favorite topic batteries. If not just yet then they likely will be soon.
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