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There are many parallels between Web1 and the utility-based energy sector. Both Web1 and today’s electrical utilities provided functional, stable and reliable services to society. In this blog, we will explore the similarities between Web1 and the increasing challenges associated with a “Web1” energy solution.

The Monopolistic Web1 Utility Energy Model

Physical Design Of The Utility Energy Grid

The utility energy model (Web1) was designed and built over the last century (and in some cases, active infrastructure is over 100 years old!), and for climate conditions of the past, not the climate of the future. Combining the aging infrastructure with changing weather conditions, the centralized grid is becoming a safety risk and suffering increasing reliability issues. Some examples:

This is resulting in a grid that is more expensive to maintain, and in turn more expensive for the consumers, less safe and less reliable.

Further, utility energy models were designed for base load fossil generated power and are not well designed for intermittent renewable energy technologies, bi-directional energy flows (to and from the consumer) or for ever-growing loads (as will be seen with the electrification of everything – including our transport sector.


Utility Energy Model In Commercial Structures / Business Models

Commercially, in a traditional regulated utility business model, consumers are passive customers who purchase electricity from their local monopoly utility provider at a regulated price. The utilities generate or purchase electricity at wholesale prices, add on their costs of running the business including a return for shareholders, then sell it to consumers at a higher price. The difference between the two prices is called the “rate base”. The way that regulated utilities recover costs and earn profits can be seen as an obstacle to them providing the best service possible to their customers.

This is because the business model rewards utilities for making capital investments, but not for contracted services that may actually serve customers better. It has become an increasing concern as utilities discover that contracted services for solutions such as distributed energy resources (DER) may provide more reliable and affordable customer services but do not fit their model. A few examples:

“Big power companies operate as monopolies with captive customers in much of the south-east US. They are supposed to be closely regulated, but their profits and unchecked political spending makes them some of the most powerful entities in a state.”

Attempts to change Net Metering rules in CA – As proposed, it would slash the payments made by utility companies to rooftop solar owners for exporting their excess PV production back to the grid. EQ Analysts said the proposal would lead to a 57-71% overall reduction in solar savings across the state.


Final Thoughts On The Utility Energy Grid (Web1)

The centralized nature of our grid served a purpose and served it very well. But as with the web, based on user needs, changing conditions and advances in technology, the Web adapted to a Web2 era. The centralized grid and the utility sector is ripe for change and must adapt to meet the needs of businesses and society of today and the future.

So what’s next? Follow us here and keep an eye out for the next blog for a deeper dive into the Web2 energy system.


VECKTA is leading the way by supporting businesses globally to simplify and accelerate the energy transition (and into a Web3 world!). Why not join us on this journey to take control of your energy, and make the switch to a cleaner, more sustainable, and profitable energy future?

Schedule a demo of the VECKTA Platform today:

Barry Callebaut’s Use Of Sustainable Ingredients

When it comes to sourcing ingredients to produce chocolate on a global scale, prioritizing ethical and sustainable sourcing needs to be enforced and upheld as the industry standard.

Barry Callebaut is transparent about where and how they source everything from packaging materials to the raw ingredients like cane sugar, coconut, and cocoa that go into their products.

In addition, they aren’t afraid to admit where there is room for improvement. For example, palm oil is one of the leading causes of deforestation of our rainforests.

Therefore, Barry Callebaut has been a member of the Roundtable on Sustainable Palm Oil (RSPO) since 2011. And recently, they joined the front-running members of the Palm Oil Innovation Group (POIG) in order to build upon the efforts of RSPO to further advance sustainable palm oil requirements.

Corporate Commitment to Sustainability

It’s one thing to say it, but Barry Callebaut takes action. Their corporate commitment to sustainability runs deep within their policies and codes of conduct, solidifying their values through actionable steps and practices. The entire team at Barry Callebaut upholds these high standards of sustainability and ethically- sourced ingredients.

Sustainability Reporting at Barry Callebaut

A key theme throughout all of Barry Callebaut’s efforts is transparency. Committed to reporting transparency around their sustainability measures, they publish a sustainability report every fiscal year. 

The Forever Chocolate Campaign

Forever Chocolate is Barry Callebaut’s campaign to make sustainable chocolate the norm. By 2025, Barry Callebaut hopes to achieve four ambitious targets that address the largest sustainability challenges in the chocolate supply chain: