editor’s view By david ridsdale, editor-in-chief Solar growth sees utility concerns raised
A RECENT CASE in the USA highlights the growing concerns utility and energy providers are having regarding solar deployment and how it interacts with the grid. Some sites are making more solar than they need so are sending the rest of it back to the grid and receiving payment for it. The companies who traditionally have had a strangle hold on grid distribution have no plans on how to deal with energy from solar in a system that has classically been a one way street for energy distribution.
The case sees Ohio utility companies complaining that solar users take advantage of the grid but do not pay for this and the companies are forced to pass on the costs to energy users without solar. While not everyone will agree with the cost re- distribution the situation does raise a growing concern amongst energy companies around the world. Subsidies are paid when energy is put onto the grid but if it overtakes the local need, as occurs in Germany every summer, then the energy companies have no room to sell their product as the renewable energy comes first.
Such an economic showdown from powerful energy companies with lobby money to burn could be a huge problem for the renewable energy providers as a whole but the sheer success of renewable energy in recent years puts governments in a love/hate relationship with the technology and the political ramifications from traditional election donors. Critics of the energy companies suggest the behemoths are blocking progress while the energy companies talk of protecting their hard built assets and distribution methods.
The sad thing is they are acting as if it is a surprise and that they are the victims of a government supported programme of
subsidy based competition. The truth is the traditional energy companies felt that their monopolies were well protected and chose not to act on the growing desire for renewable energy sources. They chose to ignore the early growth or leave the renewable sector as an area where the profit took to long. They have been caught behind the eight ball as the technology and global market growth took them by surprise.
Whatever the past the future of energy is going to need solutions and not just new methods of billing the consumer for energy. The goal is for cheaper and sustainable energy and consumers will get sick of footing the bill for energy companies losing their market share due to a slow reaction to sustainable and renewable energy growth.
Issue V 2014 I
www.solar-international.net 3
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