Article originally posted on Bloomberg Gov.
The electricity industry is entering a period of fundamental change, driven by strong technology and policy forces, as well as changing consumer demands and expectations. Business-as-usual is no longer sustainable in a future with increasing distributed energy resources and a smarter, cleaner, more interactive electric grid. Why? Traditionally, utilities collected revenues to cover their costs, plus profit, through the electricity sold to consumers. However, as more rooftop solar and energy efficiency come online due to customer preference, the amount of electricity sold by the utility declines, reducing revenues and cutting their profitability.