Challenge facing the electric utility industry - Scholarship Essay Example

Comments (0) Cite this document
Policies of reducing carbon are making utilities to search for better ways of powering offices, homes and factories. Many investors are putting pressure on the…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.4% of users find it useful
Challenge facing the electric utility industry
Read TextPreview

Extract of sample "Challenge facing the electric utility industry"

Challenges facing the electric utility industry In the 21st century, the demands on electric utilities are completely different than the past century’s demands. Policies of reducing carbon are making utilities to search for better ways of powering offices, homes and factories. Many investors are putting pressure on the electric utility industry to be more forceful in managing the risks they are likely to face. This paper will talk on different challenges the electric utilities face. The electric utility industry faces challenges from increase in spread generation, the change toward energy efficiency and negative or weak demand growth.
Increase in Energy Efficiency
As stated by the American Council For an Energy Efficient Economy, spending of various utilities in the United States has increased from $1.6 billion in 2006 to around $5.9 billion. Reserves from energy efficiency programs amounted to close to 22.9 million MWh in 2011. This was a 20% increase from 2010. Energy efficiency programs have been supported by utilities as they are cheaper than building power lines and plants.
Increase in Population
Electric sales are not increasing because many businesses and individuals are using solar panels. According to the Interstate renewable Energy Council, in 2008, photovoltaic installations increased from around 1,000 MW to 7,250 MW. These installations are reducing electric sales. Usage of solar is expected to increase as the prices are dropping.
Weak Demand Growth
Over the years, demand growth on improved efficiency has been reducing. According to the Energy Information Administration, they expect demand to grow in the United States by 0.9% only yearly through 2040. Consumption of electricity reduced when Americas economy was in recession. Utilities in the U.S. are spending billions in new transmission lines and pollution control projects. An increase in demand growth would assist the utilities in spreading the costs across an increasing customer base.
Work Cited
Howland, Ethan. “The four greatest challenges utilities face in 2014.” Utility Dive. 9 December 2013. Web. 10 March. 2015. <>Read More
Cite this document
  • APA
  • MLA
(“Challenge facing the electric utility industry Scholarship Essay”, n.d.)
Challenge facing the electric utility industry Scholarship Essay. Retrieved from
(Challenge Facing the Electric Utility Industry Scholarship Essay)
Challenge Facing the Electric Utility Industry Scholarship Essay.
“Challenge Facing the Electric Utility Industry Scholarship Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Challenge facing the electric utility industry

Economical crisis facing the banking Industry

...economic factors like the global financial crisis, increased unemployment rates and unstable interest rates among other factors. This work focuses on some of the economic crisis facing the banking industry. Different types of banking have different economical challenges. This work will consider both the retail and the mobile banking systems. The financial crisis is one of the major limitations facing the banking industry. It is defined as a situation where a certain banking institution in not in a capacity to run its operations due to lack of sufficient funds. Financial crises come in different forms, for instance, currency crises, where there is...
10 Pages(2500 words)Essay

Demand and Utility will lose marginal utility because do not see spending money on eating as the investment which will yield more money. Therefore, if luxury good is not perceived as an investment, the marginal utility is decreased. What is the marginal utility of a Rolls Royce Silver Cloud to you The marginal utility of a Rolls Royce Silver Cloud is high because the value of cars tends to increase overtime and the older is an exclusive car the more expensive it will be in ten years. However, I do not plan to buy such car soon - if I would have the necessary amount to buy this model I would rather find another way to invest my finances and earn more money in...
2 Pages(500 words)Essay

Facing a Personal Challenge

...Descriptive Essay- A Personal Challenge Facing a Personal Challenge It was late summer and although the hint of fall weather was lurking in the background, I nevertheless felt that Helios was smiling upon me, affirming my belief that I was doing the right thing. I needed that reassurance because the journey I was about to embark upon represented the greatest challenge I had ever faced. I finished my coffee. The time was approaching; signaled not only by the dwindling sunlight, but also the slight feeling of nausea which was developing inside. I paid the bill and made the short walk to the car, in which my Worldly goods were packed to busting point. The...
2 Pages(500 words)Essay

Utility and Demand Theory

...Running Head: Utility and Demand Theory Utility and Demand Theory Utility is a measure of the level of satisfaction an individual gains from the consumption of a unit of a good, utility is measure in two ways and they include cardinal and ordinal utility. Marginal utility is an important law given that it explains why the demand curve is negatively sloped. This paper utilises the utility theory to show that assuming that there are only two good then an increase in the price of one good will reduces the demand of both goods, a reduction in the price of one good will result into an increase in the demand of the two goods....
7 Pages(1750 words)Term Paper

Electric Fan Industry Case Study

...Company analysis: Electric Fan Industrial Case Study Marie Jean Nova Southeastern Griffin Company analysis: Electric Fan Industry Case Study Executive Summary This report is about the analysis of an electric fan company, Bhagyanagar Fans Limited. The emergence of electric fans started in the 1900’s with India, the first to manufacture an electric fan, dominate the total production and the market share. Among the many fan companies in India, Hyderabad is considered the largest ceiling fan manufacturing center in the country. Tibrewala, owner and chief executive...
1 Pages(250 words)Case Study

The biggest challenge facing your national economy today

...Essay, Business Topic: The biggest challenge facing your national economy today The economy of United s is the largest economy in the whole world and is considered to be one of the super powers. The United States is made of a large number of states, each having its own local government and all these are then governed by the federal government which is headed by the president of United States. It is the largest multicultural nation of the world along with being the fourth largest country in terms of land area and population. Its currency, dollars, is treated as an international currency and most of the international transactions of foreign trade and exchanges are done in US dollars. Almost every economy...
2 Pages(500 words)Essay

What is the #1 global challenge facing humans on earth

...skills and behavior. The current world population statistics indicate figure above seven billion. A comparison of the same figure over years of economic transformation and industrialization reveals a steady increase in the general population. This paper analyzes overpopulation as a leading global challenge facing humans on earth. The discussion targets to explore causes of overpopulation, effects of overpopulation and solutions to overpopulation. Various population data of the world’s nations will form the basis of argument on the topic. The presentation will also feature various population conditions in regards to geography as a course study to address the crisis “The population of...
4 Pages(1000 words)Essay

The Buyer Utility Map

...Wal-Mart Approach Assessment using Buyer Utility Map PURCHASE DELIVERY USE SUPPLEMENTS MAINTENANCE DISPOSAL PRODUCTIVITY Providing different assortments online SIMPLICITY Access to products online CONVENIENCE Online payment, Opening branches in the neighborhood Home delivery of goods RISK FUN AND IMAGE ENVIRONMENTAL FRIENDLINESS Wal-Mart Stores approach aims to improve customer experience and create a new utility, by addressing customer preferences and needs. Wal-Mart has recognized that the availability of assortments is a concern for customers. Wal-Mart first approach is aimed to increase the number of items and the number of different varieties that provide customers with more choice over the...
1 Pages(250 words)Essay

Important challenge facing management

...Important Challenge Facing Management Important Challenge Facing Management One of the major issues affecting management, today hasto do with employee performance. Many times, the employees of an organization do not perform their duties as per the level expected of them. A number of factors exist, which contribute to such a scenario. Many times an organization has unclear and unrealistic targets, which tend to destabilize the employee (DuBrin, 2009). This may occur when the employee does not fully understand what the company expects of him, or if he has to operate beyond his legal jurisdiction. One may also find himself working in an organization that is not ideal for...
1 Pages(250 words)Essay

Electric Industry

...can supply the entire demand at a considerably lower cost than multiple electric firms serving the appropriate market. From this basis they conclude that electric transmission and distribution must always be to be regulated, since in the absence of energy regulation, transmission and effective electricity distribution owners may not face enough competition in the industry to ensure prices are kept low to consumers and to attain economic efficiency in electricity transmitting and distributing. This is, however, the case with many other natural monopolies in the industry. Natural monopolies exists where the largest...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Scholarship Essay on topic Challenge facing the electric utility industry for FREE!

Contact Us