A Distributed Electricity Company (The Future of the Modern Electricity Network) - PART 2 of 3

The volume of distributed generation is climbing (as discussed in the first post).  This trend will continue and it will ultimately reduce demand on centralised plants.  Although, due to the need for stability and continuity of supply, centralised infrastructure and plants will continue to be needed.

When combined with the need to update and renew ageing infrastructure, centralised plants have reducing revenue streams and static or increasing costs.  Hence, the cost of buying power from centralised plants must and will increase (in the US this is already happening, for a NZ context, have a look at this google search both now and in the coming years).

Net result: The price of Grid purchased electricity is going to continue to climb.

Note: I haven't talked about other drivers for electricity price increases (e.g. privatisation and the need for good profit margins), plenty of others are discussing that already.

One very good way of insulating yourself from this trend is to join the growing throng of people who generate their own electricity.

Photovoltaic (PV) panels generate electricity from sunlight

Not everyone has the financial means to purchase and install their own PV system though (even if the ongoing financial benefits make sense, you still need capital readily available to purchase the system in the first place).  This effectively creates a roadblock for many people.

There are some solutions to this conundrum.  In the next and final post in the series on Distributed Electricity I will discuss the options.