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66 MICROPOWER: THE NEXT ELECTRICAL ERA DEVELOPING MICROPOWER “SOFTWARE” 67 create a wider constituency for the new technologies, cat- alyzing the positive feedback of technology, capital flow, and policy change that brought unprecedented innovation with- in the telecommunications industry. Here as well, the result could be better customer service at a lower cost.146 Greater dialogue among regulators, micropower advo- cates, and distribution companies can help build micropow- er markets. By collectively identifying benefits of small-scale power as well as barriers that stand in their way and then developing supportive policies, these groups can build demand for these systems. While some utilities may not sup- port micropower without external prodding, and could con- tinue to take defensive steps to slow its spread, a growing number do see the business opportunities and are willing to work with other groups to determine how the new tech- nologies can meet their needs. Chicago’s Commonwealth Edison, for example, is collaborating with community and environmental groups to explore ways to deploy small-scale power on a neighborhood-by-neighborhood basis.147 Indeed, new business models may evolve around the new micropower technologies, just as the vertically integrat- ed utility developed in tandem with central-station power. Lest they repeat the mistakes of IBM, utilities and firms cur- rently vested in large-scale power face the management chal- lenge of “cannibalizing” themselves: creating businesses that may eventually displace their existing core operations. Former AlliedSignal President Tony Prophet frames the var- ied responses of utilities to this challenge this way: “At every point of evolutionary change, the survivors always adapt. Some of the dinosaurs turned into mammals. The others became fossils.”148 The test for government agencies, meanwhile, will be to mainstream micropower into operations. A U.S. National Research Council study has recommended that the Department of Energy create a dedicated office to deal with distributed power systems that will define their benefits to national interests, coordinate standards to open markets, and address the institutional barriers they face. The agency has formed a Distributed Energy Resources Task Force to begin this coordination. The agency is also working with universities and industry to help promote small-scale sys- tems in places like research parks.149 International collaboration and research cost sharing between and among governments and industry could spur small-scale power. The U.S. President’s Committee of Advisors on Science and Technology projects a $10 trillion worldwide energy market over the next 20 years, much of which could be captured by farsighted companies drawing on appropriate governmental backing. The panel observes that European and Japanese wind and solar firms have received considerable public support for exporting their technologies, which has enabled them to grab market share from American counterparts.150 Beyond export markets and tech- nological leadership, the prospect of reduced oil import dependence, air pol- lution, nuclear safety risks, and climate disruption provide additional justifica- tion for promoting micropower sys- tems globally. The U.S. government is supporting the California-based Nautilus Institute’s installa- tion of three small wind turbines in power-deprived, famine- stricken rural North Korea, in part to lessen bilateral tensions over nuclear proliferation. The Kyoto Protocol’s Clean Development Mechanism is another avenue through which near-commercial micropower technologies might be fun- neled—serving “Northern” climate commitments and “Southern” development objectives while driving down the cost of the new systems.151 Governments and NGOs face the formidable responsi- bility of raising public awareness of micropower’s benefits and its financing options. The London-based group Intermediate Technology, for example, has published a guide for development organizations on the financing of renew- able energy projects; and the National Renewable Energy Indeed, new business models may evolve around the new micropower technologies.PDF Image | Micropower: The Next Electrical Era
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