Why Elon Musk Is A Utility Executives's Worst Nightmare

Todd Woody | Quartz | October 16, 2013

Attention US utility executives: You have a decade at most before the boom in renewable energy makes your century-old business model as relevant as a rotary telephone. In the time it takes to get a transmission line built in California, solar energy production and other new technologies could render obsolete the monopoly business of selling electricity at a fixed price for a fixed profit to a captive audience of consumers.

Sound far-fetched? Just ask German utility executives how their coal-fired power business is doing. In the course of a decade, Germany has transformed itself into a green energy powerhouse. On Oct. 3, for instance, nearly 60% of the electricity generated in Germany came from wind farms and rooftop solar panels. That’s pushing fossil fuels off the grid and utility profits off a cliff. Utility EON’s profit is expected to fall 40% this year, according to Bloomberg, and it and other traditional power producers are moving to shut down coal and natural gas-fired power plants.