Smaller is Better- Decentralizing Power Generation

• What will be the effect of greater decentralization of power generation?
o With cleaner, more efficient technology available for power generation, decentralizing the industry may become more of an issue than most anticipate. Natural gas reserves in the U.S. create a great opportunity to fuel smaller localized generation facilities and returns the option to use the expelled heated water for purpose as opposed to wasting it in cooling towers. The overall effect of decentralization could eventually eliminate some of the remote power generation facilities.
• What new businesses will evolve in this changing landscape?
o The obvious new business would be installation companies of such equipment. Other business might be maintenance companies to maintain and repair these centralized facilities. Extension employment will trickle down as companies or building management teams will need to hire people to manage any equipment as well.
• What business can you see yourself creating to serve this market?
o I could see the opportunity to create a consultation business to help communities, building owners and businesses evaluate the possibility to install such a centralized facility and release from the grid.

One thought on “Smaller is Better- Decentralizing Power Generation

  1. Hi James,
    I too think there will be an opportunity in servicing these new providers, as it is unlikely that they’ll start with a fleet of servicemen. Depending on how many electricity providers there are in a region, there may even be an opportunity to serve a few of them. I think the biggest challenge that will face these new providers, at least in the US, is their access to the grid. If the grid becomes unregulated, then I think that provides an entirely new avenue of opportunity for a startup based on servicing the industry.
    All the best!
    Ken

Leave a Reply