Nuclear power will make electricity too cheap to meter,” a prediction made in a 1954 statement from the head of the Atomic Energy Commission. 70 years later I’m predicting that electricity will be almost free, but powered from that fusion generator 93 million miles away. Sounds crazy, but rooftop solar is already generating power for $0.06/kwh — compared to our average rates here in California of $0.45/kwh.
As rooftop solar costs continue to decline and grid electricity costs continue to increase, we need to prepare for three traumatic energy industry changes:
1. Gasoline demand will plummet as EVs dominate road transportation.
2. Natural gas demand will decline steadily as heat pumps dominate space heating and solar dominates power generation.
3. The utility business model will collapse as technological changes (solar and batteries) turn the electric grid upside down.
Please listen to this week’s Energy Show as we dive into the capital costs, operating costs, ownership arrangements and timing for the four most common types of power plants. The results make it clear why utilities are trying so hard to stop the growth of rooftop solar and storage.
