Utilities: What Walmart's power plans say about your future (it's scary!)
Apr 17, 2013
By Jesse Berst At first glance, the Walmart press release on page 2 sounds like just another greenwashing announcement bragging about the things the company will do to improve the environment.
Look a little closer, and you'll see that it is not that at all. And you'll see that it has some challenging implications for the current utility business model. First, consider these key points made by CEO Mike Duke at Walmart's annual Global Sustainability Milestone Meeting. The company intends to:
• Produce or procure 7 billion KWh of renewable energy every year (up 600% from 2010 levels!)
• Reduce the energy intensity of its buildings by 20% compared to 2010 levels
• Install solar on at least 1,000 rooftops by 2020 (it has 200 in place or in development now)
• Increase LED usage indoors and outdoors
• Be supplied 100% by renewable energy by 2020
Walmart's 600% increase in renewable energy will be the approximate equivalent of two fossil fuel plants.
Here's another key point -- Walmart's driver is NOT the environment. Walmart's motivation is purely economic -- saving money on power bills. The environmental benefits of switching to renewables is simply a PR bonus.
Now consider what would happen if ALL of your commercial and industrial customers went down the same path. If ALL of them committed to using 20% less energy. And ALL of them decided to generate as much of the remaining 80% on their own as possible. And ALL of them demanded that what little they bought from the utility had to be 100% renewable.
Now consider that Walmart is a thought leader in big box retailing, pioneering business strategies that its rivals rush to copy.
Anybody else worried what this will mean for the utility business model, which for the last 50 years has assumed that demand will grow every year? Anybody else think that utilities should be getting into the business of supplying rooftop solar for the customers that want it? Use the TalkBack form at the bottom to agree or disagree.
Read more renewables news and trends >> http://www.smartgridnews.com/artman/publish/Technologies_DG_Renewables/Where-does-your-region-rank-New-report-documents-steady-rise-in-renewables-5677.html Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services. Page 2: Read the Walmart press release >> http://www.smartgridnews.com/artman/publish/News_Commentary/Utilities-What-Walmart-s-power-plans-say-about-your-future-it-s-scary-5694-page2.html