Next-Generation Electricity Technology is Being Held Back by Outdated Markets. Here’s How to Fix It.

by Shayle Kann

Yesterday’s prevailing wisdom – that clean energy is too expensive for widespread adoption – is now rarely expressed among energy market leaders.

But there is a long way still to go. Today’s prevailing wisdom still assumes this transformation will pose a threat to the grid’s stability. Even if these new resources are cleaner and cheaper, surely they will impose an array of new external costs to maintain reliability and resiliency, right?

To the degree that this risk is real, it is largely self-imposed, because the next generation of energy technologies remain structurally disadvantaged in today’s power markets. Renewables, energy storage and demand response (sometimes) get credit for their potential to reduce greenhouse gas emissions, but they could offer so much more. Rather than being liabilities in tomorrow’s power system, they could be assets. But first they need the opportunity to perform.

In Shayle Kann's parting research note, he provides 8 rules that can help unlock the next-generation electricity system.

Shayle Kann Senior Advisor

Shayle Kann advises GTM Research, the market analysis, advisory and consulting division of Greentech Media. GTM Research analyzes and forecasts the dynamics impacting the transformation of the global electricity sector. An expert on next-generation energy, he has presented at conferences around the world, been featured in publications such as The Economist, New York Times, Wall Street Journal, Washington Post, Forbes, Bloomberg, Reuters, and Financial Times, spoken at Harvard, Yale, MIT and Columbia, and testified in front of the U.S. House of Representatives.

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