Exponential Technologies and Innovation Ecosystems

Emerging technologies and market imperatives converge to bring an era of revolutionary change to electric energy. Such change can lead either to the disruption of the incumbent utility industry or to an historic business opportunity. Which occurs will depend upon the strategic response of the industry and its regulators. The case in point is the microgrid, a platform that combines technologies originating outside the electric sector to offer improved services to customers as well as benefits for the larger grid. These microgrids could disrupt the industry by allowing the best customers to reduce their grid service sharply. On the other hand, microgrids could enable open-architecture, innovation ecosystems that bring to all participants improved service at lower cost. Such ecosystems can evolve from the venture capital investments currently supported by many utility companies.