Tuesday 20 June 2017

Nearing Tipping Point !

The news that the price of electricity is about to hike twenty percent delivers a danger that we may see a market change that makes the future of this commodity unworkable.  The price of solar is so low that going " off grid " is now a realistic solution for many.

The household that relies on gas for cooking and hot water is fast reaching the point where battery storage can safely handle the electrical needs during the hours of darkness.  Many who are thinking of investing in a battery pack have qualms about severing that connection to the grid.   They fear a volcanic eruption somewhere in the world may block the degree of sunlight or a succession of bleak days may reduce the input from solar.  Connection to the grid ensures they will not be left in the dark.

Like everything else that is mass produced, the price of portable electric generators has also tumbled in recent years.  It is now possible to ad such a backup unit to solar and a battery pack for as little as a thousand dollars.  It is inevitable that the solar industry will eventually make that connection and offers a combination deal that allows householders to go grid free with safety.   The cost of fuel would be negligible for the rare times they may be needed to plug an emergency.

The danger is that the economics of the electrical power industry relies heavily on its use uniformity.   The fact that every home is hooked up to the grid shares the enormous cost of the poles and wires to deliver electricity and once that is broken the cost to individual homes escalates.  If going grid free becomes a fashionable trend it will be unstoppable.

In fact, it is the power of public opinion that is the cause of this surge in electricity pricing.  The need to halt global warming has turned attention to the old and inefficient coal burning power stations and many have been closed before reasonable alternative sources have been approved and built.  It is now almost impossible to get public approval to create new era power stations that efficiently burn coal to deliver the cheaper electricity we need to retain the electricity price structure.

We are in that dangerous situation of fearing blackouts next summer because our power needs exceed our ability to supply and obviously this will hasten the decision of many people to give serious thought to adopting an off grid living style - and once that takes hold it can become a trend that runs completely out  of control.

This coming price rise brings us to tipping point.   Low income families lack the finance to move off grid but once a proportion of higher income homes make the move the grid price is forced even higher because the costs are shared by a smaller pool.  The price structure now in place then becomes unworkable.

We need some practical and hard headed decisions on how we generate electricity before the arrival of next summer's heat !

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