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Distributed Generation Impacting Utilities’ Revenue and Growth Potential

An article published in the Wall Street Journal intimates that the growth of distributed generation is threatening revenues and growth prospects for some utilities, citing a report from the Edison Electric Institute.  Though distributed generation only accounts for 5% of production in the U.S., many customers who implement distributed-generation projects are large customers.  These are the types of customers that utilities typically find more profitable.

The article also discusses the impact of declining cost of distributed generation, along with the subsidies for green energy projects such as tax credits.

Read other AHC Energy Blog posts regarding tax credits and incentives for energy project development by clicking here.   Learn more about AHC’s Energy Project Development Group by clicking here.

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