03-01-2019, 04:02 PM
And I've posted enough on this for the day (easy enough when you're puttering around with a head cold and nothing better to do), but this McKinsey study takes the Lazard report and adds some fairly thoughtful analysis as to how utilities can update their traditional business models to account for the ever-increasing competitiveness (due to cost declines) of these power generation technologies.
https://www.mckinsey.com/industries/elec...ricity-mix
I am very curious to know which of the Utes I hold will manage this transition intelligently, in a way that increases shareholder value. One of my holdings, Southern Company, appears to have these considerations built in to their business plan:
https://www.southerncompany.com/corporat...y-mix.html
No small feat to plan to increase solar from 22% to 30% of the company's total renewable production in five years. Also no surprise that the renewable power generation source seeing the largest projected growth (solar) is the one that is experiencing the steepest drop in the cost curve. Now, whether I trust Southern Company to execute intelligently is another matter. They certainly did a poor job with all the Vogtle plant cost overruns, and the stock price action has been pretty mediocre compared to the Utilities Index as a whole.
https://www.mckinsey.com/industries/elec...ricity-mix
I am very curious to know which of the Utes I hold will manage this transition intelligently, in a way that increases shareholder value. One of my holdings, Southern Company, appears to have these considerations built in to their business plan:
https://www.southerncompany.com/corporat...y-mix.html
No small feat to plan to increase solar from 22% to 30% of the company's total renewable production in five years. Also no surprise that the renewable power generation source seeing the largest projected growth (solar) is the one that is experiencing the steepest drop in the cost curve. Now, whether I trust Southern Company to execute intelligently is another matter. They certainly did a poor job with all the Vogtle plant cost overruns, and the stock price action has been pretty mediocre compared to the Utilities Index as a whole.