What is the Decentralized Grid? Let’s Agree on a Definition
By Elisa Wood, Energy Changemakers
Get a group of energy innovators in a room and watch the debate begin over energy terms. This isn’t surprising. Change is happening fast, and everyone wants to ensure they’re on the same footing. This article attempts to get us in synch defining the decentralized grid.
Grid decentralization certainly isn’t the only big change happening in energy now. Still, I think it will likely have the most profound influence on economics, consumer behavior and climate over the next decade. That’s why it’s the focus of Energy Changemakers.
What follows is my take on the decentralized grid and its larger implications. Feel free to disagree with me or add to my definition. You know where to find me!
Sometimes, the best way to define something is to describe what it is not.
So let’s state the obvious to get it out of the way. The decentralized grid is not the conventional grid, which delivers power to electric consumers from large power plants over long distances through transmission and distribution lines. That’s because a decentralized grid operates near where its energy is consumed.
The decentralized grid and DERs are not the same
Second, let’s make clear that the decentralized grid is not distributed energy resources (DERs) – solar, batteries, electric vehicles, etc. Or rather, it’s not these resources operating in isolation...Continue reading on EnergyChangemakers.com.
Retired, Chief Operating Officer at Tampa Electric Company
9moOk, I will be the dissenter, at least partially. I’ve been working in this space for at least the last 7 years. Decentralization is a necessity in the path toward decarbonization and resiliency. Decentralized grids come with the potential to be an order of magnitude higher in reliability than the utility grid of today. They also come with and order of magnitude higher level of complexity which translates directly into higher costs and reduced reliability that needs to be overcome with technology. And DCG (for short) are even more complex in regions operating markets than in vertical integrated states. The retail cost per customer in market based areas has already proven itself to be much higher than in regulated utilities and that difference will grow because naturally there are many more players taking a cut of the action, sometimes with unchecked profits. This will not result in a transfer of energy wealth to the community but rather energy wealth to private companies participating in the transition. After 25 years of deregulation we should have learned that by now.
Energy Writer and Editor
9moI've updated the definition. Thanks Lorenzo Kristov for pointing out a few things I missed!
I love electricity...and a better life for our community!
9moI’d call it EZ $$$ that stays in your pocket (and YOUR fire department, school, church, neighbors and local businesses pockets). What’s not to love?
The Microgrid Mentor | LinkedIn Top Voice in Clean Energy | Amazon Vine Reviewer | Award-Winning Author | Advisor on Microgrids, EV Infrastructure, & Hydrogen Solutions
9moAbsolutely, Elisa Wood! Decentralized energy solutions represent a transformative shift towards empowering communities and ensuring sustainability. Fully support this vision!