The Coming Electric Revolution

Power outages ruin Thanksgiving … it’s highlighting a coming energy revolution … how Luke Lango is targeting 10X returns from it

 

It’s a chilly Thanksgiving evening, winds gusting outside …

Fortunately, you’re cozy inside your kitchen, preparing side-dishes as the turkey cooks. Your family is in the den, lounging around the television watching football.

It’s a peaceful, Rockwellian moment.

And that’s when it happens …

The electric company cuts your power.

And not just for a few minutes, mind you — for the rest of Thanksgiving.

That means you spend the holiday in the dark. No more football, no more central heating, and no turkey.

This just happened to more than 9,000 Southern California Edison customers near where I live in Los Angeles.

And why, exactly?

Because that’s what happens when you combine elevated fire risk from heavy winds and an antiquated electrical grid.

From NBC Los Angeles:

Southern California Edison began shutting down power to thousands of customers on Thanksgiving Day to guard against possible wildfires as strong Santa Ana winds whipped through the region.

Early Friday, more than 9,000 customers were without power …

Shutoffs are designed to reduce the risk of fires caused by electrical equipment when strong winds are forecast.

Several large fires in the state have been linked to electrical equipment.

 

***As we’ve noted here in the Digest, Californians have been struggling with blackouts throughout 2020 as historic wildfires have ravaged the state, forcing power shutdowns

 

But many residents are reaching their boiling point with the Thanksgiving blackouts.

From the mayor of Fontana, California, Acquanetta Warren:

I talked to a lot of residents today and they are fed up …

It has been very frustrating. I get what the residents are feeling. I’m feeling it.

We really need to come up with a better method.

Some Californians aren’t waiting for officials to come up with this better method. They’re already doing it themselves …

And it’s pointing toward the beginning of a new energy revolution with trillion-dollar investment implications.

 

***These residents have decided to go “off the grid”

 

Many fed-up residents are installing solar panels on their roofs and battery walls in their garages. In short, they’re turning their homes into independent energy hubs that don’t rely on utility-sponsored electric grids.

So, when heavy winds mean electric companies are shutting off power, their lights, heat and ovens stay on.

Here’s Luke Lango, editor of The Daily 10X Stock Report, with more:

While they might be the anomaly today (most of us are still connected to the grid), energy independence will increasingly become the norm over the next decade.

That’s because utility-powered electricity costs keep going up and blackouts are becoming more and more frequent, while renewable energy costs keep coming down and the technology prowess of home energy solutions keeps getting better and better.

Inevitably, we will soon get to a point in the not-too-distant future where distributed energy systems (as energy folks like to call them) are cheapereasiermore reliable, and more convenient than being connected to the grid.

At that point, the Distributed Energy Revolution will go mainstream and take-over the $2.4 TRILLION global electric power industry.

Now, before we go any further on this energy revolution, let me back up a moment to make sure we’re all on the same page.

For newer Digest readers, The Daily 10X was created earlier this year for one sole purpose:

Deliver to your inbox — every day the market is open — a top-notch small-cap stock pick that could rise by 1,000% or more in the long run.

Luke’s subscribers recently celebrated their first-such 10X winner with Chinese electric car manufacturer, NIO.

As I write Tuesday morning, it’s up an astonishing 1,123% since Luke’s recommendation on May 27th. That would have turned a $10K investment into a windfall of nearly $115K … in six months.

Meanwhile, the list of Luke’s 10X picks is littered with triple-digit winners that are poised to become the next 1,000%+ gainers.

Returning to today’s potential 10Xer, let’s now take a closer look at this Distributed Energy Revolution.

 

***The power of a distributed system

 

To better understand why we’re going to see a Distributed Energy Revolution, let’s first highlight the massive benefit of distribution.

The easiest illustration is found with blockchain technology. One of the biggest reasons why we believe blockchain will revolutionize, well, just about everything is because of the added security it offers.

You see, unlike the centralized ecosystems of today, blockchain offers distributed security — which is a huge advancement.

Blockchain is a system in which a record of transactions is maintained across a wide network of different computers — not one centralized ecosystem.

A hacker would need to hack ever single computer in the blockchain … across the entire network. There’s no one, centralized target to hit. This gives the system incredible strength.


***Fortunately, the benefits of a decentralized network aren’t limited to blockchain

 

Our CEO, Brian Hunt, noted this in a recent email to InvestorPlace executives:

People are getting a REAL good look at how centrally controlled, tightly interlinked systems can be very dangerous and fragile.

A system becomes stronger and more resilient when it has distributed control … and many individual “nodes” instead of having everything centrally-controlled and being tightly interlinked. That’s why regulated capitalism produces stronger societies than Soviet-style communism.

Technology is making it easier and easier and cheaper and cheaper to decentralize societies.

Given this, it’s no wonder that we’re seeing a decentralized network begin to flourish in the utility sector. It reduces to one thing …

People don’t want their access to electricity dependent on a centralized network that’s highly vulnerable to outdated electrical systems, weather events, and basic human error.

 

***The 10X-potential gainer poised to benefit from Distributed Energy Revolution

 

In Luke’s issue, he points toward two crucial elements to a distributed energy system — energy capture and energy storage.

Luke believes the best way to play the capture piece of the Distributed Energy Revolution is through buying solar companies. He’s already highlighted a few for his 10X subscribers.

Meanwhile, the best plays for the storage piece of this revolution come through buying battery storage or fuel-cell makers — and that brings us to today’s pick …

Bloom Energy (BE).

From Luke:

Bloom Energy is a $3.6 billion fuel-cell maker aimed at making “always on” fuel cells to provide cost-effective, reliable power to commercial entities.

The company counts 24 Fortune 100 companies as its customers and has installed fuel cells at the corporate campuses of Apple, Home Depot, AT&T, Walmart, and Intel.

After providing background on Bloom, Luke points toward what have been the company’s two biggest obstacles to date …

Cost and cleanliness.

Back to Luke:

Without subsidies, Bloom Servers generate power at ~13.5 cents per kilowatt-hour, versus a national average of 10 cents per kilowatt-hour for grid power.

Meanwhile, Bloom Servers have traditionally run on natural gas, which is a non-renewable and non-clean energy source that most consumers and businesses are trying to replace with solar and wind.

To be sure, these shortcomings haven’t stopped Bloom Energy from growing. The company has still grown revenues at a 55%-plus clip since 2016.

But they have kept Bloom Energy from fundamentally disrupting the multi-trillion-dollar electricity generation market, as revenues last year stood below $800 million.

 

***When obstacles become tailwinds

 

There are two massive changes coming for Bloom that will in turn transform these obstacles.

First, Bloom Servers will soon be cheaper than grid power.

Here’s Luke:

Thanks to technological advancements and increased scale, Bloom Energy has managed to reduce Server energy costs by 18% per year over the past decade, including an 18% reduction in 2019.

At this rate, Bloom Servers should operate below grid prices of 10 cents per kilowatt-hour by 2022/23 — at which point corporate customers will start to look more seriously at mass deploying Bloom Servers because they will meaningfully boost the bottom-line.

As to the second obstacle of cleanliness, Luke notes that Bloom announced it will launch a line of electrolyzers to convert excess solar and wind energy into hydrogen power.

Back to Luke for what this means:

If they reliably function as well as the natural gas servers — and they should — then Bloom Energy is optimally positioned with a new, truly clean energy portfolio of products that will become a very important piece of zero-emission corporate distributed energy systems across the globe.

Wrapping up, like any archaic system that doesn’t change with technology, legacy electric grids and the utilities that operate them are primed for disruption.

As costs come down, and cleanliness increases, this will fuel the trillion-dollar Distributed Energy Revolution. Today’s 10X pick from Luke puts investors at the forefront of this change.

Here’s Luke with the final word:

Net net — thanks to falling costs and new green hydrogen products — Bloom Energy is finally ready to meaningfully disrupt the multi-trillion-dollar electricity generation market.

Have a good evening,

Jeff Remsburg


Article printed from InvestorPlace Media, https://investorplace.com/2020/12/the-coming-electric-revolution/.

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