The term 'gentailer' is a combination of the terms generator and retailer. This is a reference to the vertical integration of an energy company where it owns the generation and retail arms of its business - such as SEANZ member Mighty River Power.
Solar and storage has long concerned gentailers, and others in the industry, as it reduces overall demand for electricity and therefore impacts their profits. But could it mean the end for some of these companies altogether?
Just as Uber has challenges traditional taxi companies, and AirBnB challenges commercial motels and other accommodation providers – peer-to-peer models are sprouting up everywhere, including here in New Zealand, and could have a similar impact on the electricity industry.
Sonnen, a German battery producer, has just launched sonnenCommunity, a community energy trading platform which aims to link solar and storage devices into a virtual grid. Using Sonnen’s intelligent battery storage system, the members of that grid are able to trade excess electricity between themselves and if necessary, sell excess power back into the grid – effectively becoming the generator and retailer, and with the potential to replace traditional energy companies.
Sonnen have just launched into the U.S and their success will be watched with interest. The model has proven to work in other industries and could also work in electricity.
Whether the technology replaces energy companies, or ends up partnering with them remains to be seen.
