andy stone | greentech media | 3 august 2016
To read the full article in Greentech Media, click here.
PA energy experts Marcel Munz and Olaf Remmler, are quoted in an article in Greentech Media. The article discusses the latest European trend of utilities offering services that allow customers to self-consume their solar power.
Commenting on this, Marcel states: “From the utility perspective, what they’re ultimately doing is making customers produce their own electricity and not buy from the utility, destroying the utility business model. But margin in the retail business is so low that they have to act somehow and find new ways of creating value. Utilities feel their traditional business models aren’t working anymore.”
Marcel continues: “It doesn’t always make sense to invest in battery storage from a residential point of view, but it is improving. But as battery prices fall 10 percent to 15 percent each year through 2020, by the beginning of 2018 it will be more attractive to have this component.”
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Marcel comments: “In the long run, utilities may prefer to offer leases that provide a constant revenue stream, and the utility can charge margins on the entire value chain. This is the model that will be most promising in the future.”
In response to utility profits being slimmer, Olaf comments: “Costs are much higher. To achieve 50 euros of monthly revenue, the utility has to deal with many stakeholders and panel manufacturers. There are significant costs along the whole supply chain.”