Lesson 11 blog- Reichart


  • What will be the effect of greater decentralization of power generation?

The greater effect of decentralization of power generation will be a balanced control between the suppliers and consumers.  Balanced control is huge, because typically it is the power generation companies how have all the “power.”  Rather than being stuck with the local power generation company, consumer will have a choice.  A choice is huge for consumers.  For example the only way in which I can get cable TV is through my local provider, and they are TERRIBLE. They are so bad that I looked for SUBSTITIONS, and I do not have an equivalent one.  So my down-grade substitutions are Netflix and Amazon.

A few years ago, that was the same trouble some people may have had with electrical companies.  Now consumers are able to compare power generation companies based upon quality, price, any type of green energy factor  they like.  Hopefully prices drop due to competition, or power generation companies compete for consumers in positive ways.

  • What new businesses will evolve in this changing landscape?

As we enter a  “changing landscape” I feel that we will see consultation firms evolve and give sustainable advice to businesses or even homeowners.  I talked to a great friend/ mentor of mine who is an architect.  He told me about how, he had questions regarding a project nearly a year ago, but he was not sure who to go to.

Sustrana is sustainable near Philadelphia, and they have a goal which really convinces me that sustainable consultation firms will evolve.

Our Goal:

To enable 1,000 organizations to build strategic sustainability programs by 2020.  -That is huge!

  • What business can you see yourself creating to serve this market?

If I were to start my own business, it would be in small scale consulting.  People need help and I will be there to give them advice.  I would take on residential and business projects, hopefully working on new buildings, but also open to updates existing structures. However I have an open mind and am willing to take on new ideas.

-F. Michael Reichart

Business Opportunities Through Decentralization- Mark Moore

What will be the effect of greater decentralization of power generation?

The decentralization of power generation is an important step in attaining energy efficiency and meeting future demands. First, it is important to consider the drawbacks of a centralized system. Centralized power is a wide network of transmission lines which supply residences, industries, and almost every structure demanding power. This system is very inefficient because of the distance the energy must travel and from the loss of energy through conversion. The biggest problem; however, is the systems vulnerability to natural hazards. When one section of the distribution system is cut off due to a natural hazard, the whole system suffers.

Greater decentralization will provide a more flexible system where distributive capacity could be added through the development of a smart grid. This allows consumers to generate their own power and supply the grid with any excess power not used. The formation of ‘micro grids’ will create a more efficient, reliable system that can form a symbiotic relationship with the main grid. In the event of natural disaster, a micro grid can disconnect from the main grid and still generate it’s own power. The market implications are enormous through decentralization of power generation. Of course, the decentralization depends on government policy and the massive amounts of money spent on lobbying politicians.


What new businesses will evolve in this changing landscape?

There will be many business opportunities in the energy industry created by decentralization. The renewable energy sector alone will have major growth potential in solar, wind, geothermal, biomass, and other forms. Within these renewable energy generation sectors there will be need for installers, maintenance workers, and designers. Battery storage is a business opportunity that will continue to expand as technology increases the storage capacity. Computer software and sensors will play a large part in the development of the micro grid, which will create opportunities for entrepreneurs to cash in on their innovations. Consulting firms will be needed to help direct entrepreneurs and forecast certain niche markets made available in the changing energy industry. Finally, capital will be needed to finance these business opportunities and investors who can foresee the potential, while understanding the government incentives, stand to make substantial returns.


What business can you see yourself creating to serve this market?

I could see myself starting a consulting firm. I am not a computer programmer and do not possess the engineering skills to create something innovative. I am more interested in finance and policy, and would help entrepreneurs navigate through the government incentives and regulations, while providing them with a financial analysis of project plans. My consulting firm will help align business strategy and compliance initiatives while also providing risk assessment and governance goals. The consulting aspect in this industry could provide a business the tools needed to capture it’s full market potential.

Mark Moore Efficiency Consulting L3

The government has a responsibility to promote policy which drives the economy towards energy efficiency. Corporations have no intention of investing in research and development to create more efficient products unless forced to do so. Business as usual will occur until policy changes this business mindset or enough people demand more energy efficient products. I believe the government needs to strongly promote two basic policy types. First, a policy which can provide a benchmark for energy efficiency measures for energy generation, transmission, and end-use. Second, a financial policy which includes tax incentives, rebates, grants, and subsidies to attract investment by corporations. These policies together would create an even playing field and incentivize corporations to invest in energy efficient technology.

The three different levels of government, federal, state, and local all need to be considered when developing policy. Is a comprehensive one size fits all policy wise? I believe that the state and local levels should be allowed to tweak policy to conform with their distinct areas. As stated in the National Renewable Energy Laboratory report, ‘There is a consonance among policy goals at all three levels, with each jurisdiction focusing its operations on its own unique geographical scope. Understanding how the policies interact and can contribute to a comprehensive efficiency policy is critical to developing a plan to reduce energy consumption (Cochran, Doris, & Vorum, 2009, p. 10). Policy at the federal level should be broad with ordered guidelines providing authority over policy matters. The state and local levels need to be customized to fit into state and local laws and regulations. Each level of government can mold the most effective policy within its jurisdiction. I believe policy along these lines would be most effective in promoting energy efficiency.


The market for consulting firms, I believe, will grow in the near future as the need for knowledge on energy efficiency rises. The McKinsey report describes the value of such consulting to achieve maximum savings through energy efficiency, ‘energy managers can directly play a decisive role in capturing 1730 trillion BTUs of end-use energy consumption, but only 2% of facilities used on-site energy managers’ (McKinsey & Co., 2009, p. 83). Clearly there is a market for consulting services to large and small businesses alike. Some advantages of energy efficiency measures include, energy auditing and lifecycle cost analysis, which  could save companies vast amounts of money, while reducing carbon emissions in the process. I would like to start a consulting firm and be part of the solution to promote energy efficiency.

Cochran, J., Doris, E., & Vorum, M. (December 2009). Energy Efficiency Policy in the United  

    States: Overview of Trends at Different Levels of Government. Retrieved Sept. 11, 2014,

from http://www.nrel.gov/docs/fy10osti/46532.pdf.


McKinsey & Co. (2009). Unlocking Energy Efficiency in the US Economy. Retrieved Sept. 11,

2014, from ww.mckinsey.com/client_service/electric_power_and_natural_gas/latest_thinking/unlocking_energy_efficiency_in_the_us_economy.