The near-term focus is on scaling distributed energy resources and enabling their participation in wholesale markets, and over the coming years, regional pilot projects will evolve into large-scale deployments where aggregations of solar, storage, and flexible loads function as virtual power plants. By 2030, distributed resources are expected to displace a substantial portion of centralized fossil-based generation while creating entirely new applications such as EV charging networks that interact dynamically with the grid, smart appliances that reduce demand in real time, and digital platforms that enable households and businesses to serve as active participants in energy markets. Experts estimate that by mid-century, a significant share of electricity supply and flexibility services will come from distributed resources, complementing large-scale renewable and conventional generation.
Utilities, technology developers, and equipment manufacturers are investing heavily in digital infrastructure, automation, advanced analytics, smart meters, sensors, and distributed energy management platforms that enable real-time visibility and control of the grid at all voltage levels. Distributed grid systems can scale from the neighborhood level to entire city districts, forming decentralized supply systems capable of meeting diverse demands with resilience and efficiency.
At the same time, international markets are both developing and consuming these technologies, with lessons and best practices flowing across regions, yet the electricity transition requires a global perspective because no single nation is energy self-sufficient, and grid interconnection and interoperability are essential for long-term resilience.
Distributed Resources Require Digital Intelligence
The integration of solar, batteries, EVs, and flexible loads depends on advanced grid management, digital platforms, artificial intelligence, and automation are vital for orchestrating millions of small-scale assets into a stable and efficient system. Flexible load management and dynamic pricing are proving effective in balancing variable renewable generation with consumer demand, and over the next decade, utility investment will focus on upgrading distribution networks, strengthening cybersecurity, and developing market mechanisms that reward flexibility.
