Utilities Are Betting Billions on a Technology That Could Become Obsolete

If we think of electricity purely as a commodity, then we should apply to it the one financial rule that dominates all commodity markets everywhere: the lowest cost producer always wins. The logic behind this is simple. Why would anyone pay more for an identical product, scarcity concerns notwithstanding? If a pound (or kilo) of say sugar was $5 at store A and $10 at store B, it’s no mystery whose inventory will sell out first. The same logic applies to the production of electricity. And, to us, that’s why industry leaders have been…