Is there a monopoly on solar power generation

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4 FAQs about Is there a monopoly on solar power generation

Do monopoly utilities have monopsony power?

This latter condition applies particularly to wind and solar power facilities. As a single exclusive buyer in a restrictive geographic market for new electricity resources, monopoly utilities thus have what is called monopsony power. Compared to studies of monopolies, economists have given less attention to monopsony buyers of primary resources.

What is a natural monopoly?

A “natural monopoly” is a service or product that gets cheaper as the market grows. Hempling says that the idea of a natural monopoly has changed dramatically in recent years and that many have lost sight of natural monopoly's place in energy markets. In the past it made sense to monopolize utility services, but does it make sense now?

How do monopoly utilities react to distributed energy opportunities?

Hempling explains that monopoly utilities fear the growing impact of distributed energy opportunities on their bottom line. In the face of direct challenges, monopolies react in one of three ways: Block everything by lobbying legislators or regulators under guise that new competition will hurt the consumer.

Will monopolies make the path to community energy more difficult?

Finally, some monopolies will play along, yet make the path to community energy more difficult by introducing insurmountable financial and logistical barriers. Farrell mentions the example of Xcel Energy's community solar program.

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