While the Silicon Valley is obsessed with the latest hallucinations of artificial intelligence, the real revolution feeds the computer on which you read. It is an electron economy – in which electricity becomes as programmable as software.
Gold price $ 21 trillion
Twenty one trillion dollars. So much will probably be invested in the transition of energy, in accordance with Bloombergnef. For context, it is so far 20 times investments in artificial intelligence and greater than the combined capitalization of each Faang – FacebookIN AmazonIN AppleIN Netflix AND Google – warehouse.
Here is Kicker: the biggest returns do not come from solar panels. They come from making our intelligent, trade and precious electrons through software.
The infrastructure era is outdated
Recently, many investors emphasized that security concerns will change energy markets, which prompted countries to diversify their energy mixture. This is a type of gradual considering that may be expected from traditional firms.
Here’s what old investors do not get: we not only turn one goods to another-we are witnessing the tool transformation into a technological platform. While they debate the optimal mixture of natural gas versus sunny, they completely miss the digital forest for physical trees.
The difference is deep. The electron economy recognizes that adding intelligence to our network creates completely latest business models and market capabilities, overshadowing the value of the electrons themselves.
This is the usual pattern: traditional hotel investors debated Airbnb He built a $ 100 billion platform. The owners of taxi-medalion argued about gas prices, while Uber He created a bilion mobility ecosystem for dollars. And now energy conglomerates set the prices of products, while software firms build controlling platforms how electrons flow.
It’s not only a climate
Let’s be brutally honest. The pure energy boom began with climate problems, but now it is supercharged by much more direct forces: AI is a monster of electricity. Single Chatgpt The inquiry uses 10 times electricity Google Search. NvidiaGPU farms devour as much power as small cities.
China understands this. American politicians argued about wind turbines, while China built 80% of the global production capability of the battery. China has realized that controlling the electron supply chain means controlling the future.
Our net is embarrassingly outdated. Our electrical system was designed in the Eighteen Nineties. Most power plants work with 50% capability. Daurned Americans cost $ 150 billion a 12 months. These are huge ineffectiveness waiting for arbitration.
Three trends creating one other unicorn
There are three superior trends that it is best to know in all this.
- The economy of the equipment has reversed. Solar, batteries and EV have recorded a 90% reduction in costs over the past decade.
- Everything is the end of the energy. Your thermostat, automobile and fridge are now energy traders. The average American house has over 25 devices connected with energy, in comparison with only 3 in 2010.
- Markets are finally opening. Deregulation has created completely latest energy services markets, enabling startups for a monopoly once.
Electric Breeding Basics of the Unicorn
The ignored minots of gold, in which future giants of energy technology are born, include:
Digital twins for the network: This is a sweet place price $ 50 billion. Our electric mesh is blind. The network operators learn about failures when customers call to complain. An organization that creates “Google Electric Maps” will probably be the spine of the entire energy transition.
Electron trade platforms: Wall Street 2.0. Electricity markets transactions 1 trillion dollars a 12 months using older technology than Craigslist. When the darkens hit Texas in 2021, prices increased by 400x – but most consumers weren’t capable of answer, because market signals never arrived. The first company that has tolered the response of demand (saved electricity) will print money faster than the Fed.
Virtual power plants: Creating billions of thin air. The cutscene is a dirty secret to renewable energy. Companies that may aggregate batteries, EV and intelligent power supply devices create value from nothing. The virtual power plant in California recently generated $ 3,000 per customer in one day during a heat wave.
AI-GRID optimization: Perfect symbiosis. AI requires great power to coach and start models. But what if AI could optimize its own energy consumption? Startups building autonomous energy agents – moving AI load software to adapt to the availability of renewable energy or providing network services – create a final symbiotic relationship.
The most successful founders and investors will understand that the software eats the world, but electrons drive this software. The electron economy is not coming – it is already here. The only query is whether you will probably be a part of it or watch it from the side.