Creative Destruction in the Energy Sector: From Disruption to Transformation
This policy paper is the preliminary findings of a project on Creative Destruction in the Energy Sector. The project examines, through convening and analysis, the disruptive effect of innovation on the energy sector, particularly focusing on the electricity sector. In his summary of the workshop, Ian Muir, non-resident junior fellow at GMF, highlights the disruptions of traditional utility business models by non-energy players. Additional dialogue between all key actors is required to ensure smooth transformation of the power sector. John Jimison examines market trends and technical innovations that are destined to reshape the operations of the U.S. electric utility sector and its institutions, anticipating major change in a service integrated into every element of modern life. In his paper, Albert Bravo-Biosca explains why the process of creative destruction is so important; particularities to the electric power sector and externalities such as technological advances suggest it may be at the early stages of transformation. Gerard Reid looks at the technology-driven ongoing energy revolution with a particular emphasis on the impact of that revolution on investors and the power markets.