I want one!

profdant139 wrote:
Mex, I find your posts refreshing and thought-provoking! I don't always agree with you, but it is fun to break out of my coastal California echo chamber once in a while.

But your comments have provoked this thought: let's assume that there is a surplus of solar and wind power. Let's also assume (a big assumption) that there will soon be a cost-effective way of storing that surplus power, either in centralized banks or at the consumer level. (Without cheap storage, we're done here. The energy density of stored hydrocarbons will be hard to beat.)

The deal-killing problem that you have spotted is that the present grid is not up to the task of redistributing that surplus power. Based on what you have written, I think you know what you are talking about.

But here is what I don't yet get -- if the grid is the bottleneck, and if there is sufficient demand for redistribution of excess supply, why wouldn't the power companies build extra grid capacity?

The power companies could theoretically pass those costs to everyone who relies on the grid, assuming that the Public Utilities Commission permits them to do so. (Of course, if there are lots of "cord cutters" who go off-grid, there is no way for those companies to charge the end users for the amortized cost of the capital expenditures. Let's assume that's the exception and not the norm.)

If my series of assumptions is right, the long-term role of the power companies will change from energy providers to energy distributors. Eventually, the market (guided by the awkward hand of the PUC) will adjust to the new reality. Rainbows will sprout from the high voltage pylons, and we will all be driving electric vehicles using renewables.

I am guessing that since I know nothing about the electricity industry, I am missing something here??

I tend to agree. Cord cutters are growing at a reasonable rate and the technology is there to do it. It has to be done right and it has to add value to the home or the original installer could lose their investment. EG. Is your hose worth 25 grand more to a new buyer because he will NEVER see a power bill because of a solar system and Power wall(s) in the garage?. I lean towards the yes on that one as it would be to me...depending on what everybody else in the neighbourhood is paying. Right now my power bill is 120 Canadian dollars every second month...and that also charges two electric vehicles every week. (so no gasoline bill) An off grid system for us is close to 45000 bucks so I doubt I would pay extra for that if I was looking at a house with and without a solar system. Now, in Palm Springs (our winter home) the power is twice as much and the off grid system is half as much. So yah. I would there. Again, I don't think there is a one size fits all.

Bottom line, utility companies will have to be competitive or people who can will drop them and go with whats cheaper.

In many countries in europe there are solar panels covering EVERYTHING. Barns, houses, sheds, factories, parking lots, . Lots of microgrids popping up.