Grid Centric vs Energy Centric and Unraveling Misconceptions Surrounding Electricity Wheeling
James Beatty is Chief Executive Officer at Enpower Trading
Summary
James Beatty discusses the transition from an energy-centric to a grid-centric focus in municipalities within the electricity industry. Historically, municipalities have relied on reselling electricity and deriving income from volume.
However, he advocates for a grid-centric approach where the emphasis is on increasing energy flow through the grid. This customer-centric model enables municipalities to operate as grid operators, offering flexibility and superior energy solutions to customers. Recognizing the grid as a valuable infrastructure asset, network owners or operators can generate revenue from it.
Through negotiating new tariffs, municipalities can optimally monetize their grids, fostering job creation, facilitating cleaner and more affordable energy, and preventing the issue of off-grid flight, such as in South Africa, where customers abandon the municipal network for self-generation due to poor energy supply and escalating costs.
The shift towards a grid-centric approach is crucial for preserving market position and maintaining revenues, ensuring the delivery of reliable and affordable power to customers.
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