How Many Electric Utilities Does A Market Need?.pdf

    In this article, I argue that the the electricity business is no longer a "natural monopoly." Economies of scale matter less and less, especially in generation. Thus, a given market can support numerous electric utilities, and large countries in the tens of thousands. They will begin as microgrids, and link with other microgrids. Further, the electricity business is not truly a wide area networking business, unlike telecommunications. Thus the grid in the present form is strictly not necessary. Electricity is rather a local business. With time, I expect we will have thousands of new electric utilities, in the emerging economies and in the industrialized world. Entrepreneurship with some public policy help can spark this process.

     

    How Many Electric Utilities Does A Market Need?