Will power be local? The role of local power organizations in energy transition acceleration

A salient problem faced by governments and industry alike is how to accelerate energy transitions to enhance affordability, accessibility, and greenhouse-gas reduction. Bringing together acceleration processes and spatial scale dynamics, this study highlights the potential for electricity distribution to play a keystone role in the energy transition. We present and examine survey data of electricity distribution utilities in a region of the U.S. to show how trends in decentralization and digitization are intertwined with decarbonization. These trends rebalance economic value toward distribution networks and away from centralized infrastructure. The survey data show that electricity distribution organizations are deploying local, renewable generation projects that produce electricity for one-third (1/3) less than the cost from a centralized generation-and-transmission entity. We suggest that this change and others are likely to transform distribution operators into more broad-based local power organizations. Although the cost advantage of distributed generation seemingly marks a future of local control and decentralized organizational forms, spatial scale dynamics indicate countervailing centralization trends, including that distribution networks may evolve to dependency on external digital, engineering, and capital providers. The outcome of the resulting conflicts will affect the potential for transition acceleration to be enabled or reduced.

Automated summary

This study explores the potential of electricity distribution in decentralization, digitization, and decarbonization in accelerating energy transitions. The survey data shows that distribution organizations are deploying local renewable generation projects at lower costs, potentially transforming into broader local power organizations. However, reliance on external providers may impede centralization trends.