We are seeing enormous shifts in many different industries. These days, 5 years is enough time to totally upend an entire industry. The older and less flexible the industry, the greater the likelihood that it is in for a rude awakening.
Energy is a field that has not changed much in the last 100 year. We are in the fossil fuel era for the most part. Sure, there were some power plants that were driven by nuclear but that is about it.
Of course, over the last decade, we saw the rise of renewable energy take center stage. The amount of energy that is produced from renewables keep rising each year. This is causing a shift for energy producers.
Tesla and other companies are looking to leverage the change that is taking place. One of the areas is in the field of energy storage. This is an industry that is expected to explode over the next decade.
What does this mean for energy producers, i.e. the local utility company? Some might saw it is the start of their end.
Not so fast.
Agility and adaptability are paramount in the world of business today. What is a threat can also be an opportunity.
Western Power and Synergy are testing out a new model using the Tesla PowerBank2. The idea is that the energy company will store the energy for customer to access at a later time. In other words, the power company is looking at becoming a storage company.
Solar households that participate in the 24-month trial can choose to access either 6kWh or 8kWh of virtual storage, at a cost of $1.60 or $1.90 per day respectively, to store the excess power from their PV systems.
The company generates anywhere from $48 to about $60 per month off each customer. Power generation is taking place at the resident's home. However, this option enables them to forego having to buy a battery pack for storage at the local level.
All excess energy is sent to the PowerBank. This fills up throughout the day when power is generated and can be accessed at night. The upfront costs are a lot less for the customer, often a consideration when looking to add a solar installation.
Plus, at these rates, they are still less than an electric bill. One of the biggest factors is that Western Australia is known for having an unstable grid. Blackouts are common. This provides a much more stable energy system which is the ultimate goal of the government.
Will this become the norm? I cannot answer that. This is a 24 month trial so we will have to wait for the results.
It does showcase how important it is for companies to start thinking outside the proverbial box. With entire industries under attack and the way they have done business being targeted, it is vital that they get innovation.
Here is an example how one of the oldest industries is looking to shift as technology changes their business model.
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Posted via Steemleo