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What if energy is free tomorrow?

June 10, 2013 - Monetization
What if energy is free tomorrow?

What would the world look like tomorrow if energy is free?

Peter Diamandis recently said in an interview in a Dutch documentary that energy could be free (judging from the reduced cost per output). What if instead of energy being eventually free of charge, it would happen tomorrow? What threats and opportunities can you expect for your business?

1. Political

The politically playing field would entirely change. Countries that currently thrive due to their natural resources, would suddenly find themselves searching for a new differentiator. Their ownership of fossil fuels has intrinsically gives them a sustainable competitive advantage that is Valuable, Rare and Inimitable (VRIO) in our world today. However, in a world where energy is free or costs next to nothing, those countries would need to find a new competitive advantage to sustain their current thriving.

2. Economic

Countries which prior did not have access to abundant energy, would gain access to it, increasing the economic boost for their non-urban regions. However, if energy were free tomorrow, economically lagging countries would still need infrastructure to disperse access to energy to the outer regions outside of the cities. An economic boom would occur in investments in infrastructure.

3. Social

If infrastructure were in place, free energy can increase safety across the world. According to research, road lighting reduces accidents especially at rural intersections. Moreover, the access to free electricity can provide media access which, in turn, provides people with channels for education. This would increase the saturation of people that have access to multimedia, which, in turn, is an obvious new market for media conglomerates and startups alike.

4. Environment

I don’t think I need to elaborate on this one :).

PESTEL analysis

 

 

 

 

 

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