Why your next energy source will be closer to you.

Big energy is going local

Localization: First it happened to your information, then your food and now it's starting to happen to your energy.

David Roberts over at Grist, part of the awesome ClimateDesk collective, has identified what he calls (with a wink) a METAmetatrend. It's a common theme in 3 of the 5 "metatrends" that Pike Research outlines in their report.

The metametatrand? Energy decentralization.

He goes on to say:

Systems that were once composed of a few big technologies and a few big companies — along with thousands or millions of passive consumers — are beginning to be replaced by recombinant swarms of small producers and consumers engaging in millions of peer-to-peer transactions with a wild and woolly mix of small-scale technologies.

Here are the three larger trends that he sums up as "decentralization."

  1. Energy is becoming increasingly democratized.
  2. Technologies are converging.
  3. The role of utilities is changing.

In short, 1) People are starting to create their own energy with 2) new technologies that make it safe and affordable and 3) utilities are adapting to support this.

Amazing.

And living the San Francisco Bay Area, I can attest to it as true. I can see a handful of apartment buildings with solar panels on rooftops from my window right now. There's even one getting them installed this week. It's affordable because of tax credits and the ongoing cost savings for the building owner. And the utilities are even willing to buy the excess energy and use it elsewhere, or support that building with auxiliary energy.

We have a company in the area called 1BOG (1 Block Off the Grid) that is specifically in the business of helping neighborhood groups come together and get better deals on solar panels if more of them convert at the same time. I'm sure there are countless other similar effort going on around the country.

It's an exciting time to be alive, and I look forward to this localization of energy.

What examples are you all seeing in the places where you live?

Image courtesy of danxoneil via flickr