Scenario of power generartion is going to change.Earlier when a big power plant retired, it was replaced by one as big or bigger. But not anymore. Energy efficiency is increasingly reducing the need for more power. And when it is needed, distributed generation may be enough according to this year’s Strategic Directions: U.S. Electric Industry report issued August 12 by Black & Veatch.

As coal and nuclear plants retire  it is not necessary to replace them with the same number of megawatts because of increased levels of energy efficiency, according to the survey. Instead, utilities can turn to solar and other smaller generators.

Our system is  built around the notion of central generation, transmission, distribution. But now with renewables and more self-generation, we will have to integrate those into the grid,. We have to invest our efforts and money more on a capacity basis and less so on an energy sales basis.

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