On January 15, 2014, Macquarie Equities Research compared the hype around the demise of the centralized electric grid analogous to the exaggeration found in Sharknado, a movie depicting hurricane-propelled sharks terrorizing Los Angeles. Over the long term, the analysts argue renewables will have a meaningfully bigger impact on competitive power markets than on regulated T&D businesses.
Excerpts from the report include:
Despite the intense focus on the “utility death spiral,” Macquarie Equities Research strikes a measured tone about the future of the electric industry. The analysts also find that companies embracing these new technologies, such as NextEra and NRG, are poised for growth as the industry evolves. This outlook is similar to ScottMadden’s point of view, which is that the death of the electric utility has been greatly exaggerated and there is an opportunity for utilities to begin to integrate new resources in a way that leverages existing infrastructure and ensures reliability.
This report is part of the Clean Tech & Sustainability Minute series. To view all featured Minutes, please click here.
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