ABSTRACT
The promotion of solar energy has become an ongoing effort of Tennessee Valley Authority (TVA) and has been incorporated into its long-term goals. Indeed, the case of TVA convincingly demonstrates that it is in the interests of utilities to facilitate solar alternatives. The assumption that solar alternatives are unattractive to utilities because they are unprofitable results in large part from a bias in the method traditionally used to calculate the price of energy. The bias can be illustrated in the case of electrical generation. The primary benefits to utilities of decentralized energy alternatives such as conservation and renewables derive from the flexibility they provide in the long–term planning process. The decentralized and diffuse nature of many solar technologies is contrasted with the seemingly centralized character of utility operations and the massive investments utilities have made and are expected to continue making in large-scale systems for energy generation and distribution.
