Does Disruptive Competition Mean a Death Spiral for Electric Utilities?

  • Graffy E
  • Kihm S
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A surge in rooftop solar installations leads a wave of innovation in energy markets that manifests as disruptive competition for electric utilities. These innovations are emerging not only in technology but in public policy, social preferences, and business practices as well. Risks to the stability of current arrangements in the power sector are real, but regulatory protections cannot entirely insulate utilities from all such challenges. Legal protections should not be interpreted as an absolute right to reclaim value lost to competition. Electricity is central to social, economic, security, and environmental necessities. The institutional forms through which power is provided and utilized reflects historical factors and policy goals that can change over time. Leaders in the emerging environment will succeed by focusing on strategies that create new value for customers and that demonstrate nimble responsiveness to the broader contextual demands on energy systems, perhaps particularly during a time of rapid change. [ABSTRACT FROM AUTHOR]

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  • Elisabeth Graffy

  • Steven Kihm

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