The decentralization of energy production is a widely discussed topic that is associated with numerous hopes and fears. Advocates underscore the advantages of an energy system in which power production is widely distributed: Small-scale generation will enable new ownership structures while also promoting local autonomy and reducing the burdens on power grids. However, greater decentralization also poses risks to power system integrity, and could undermine the collective financing of the power system by energy consumers.
Clearly, empirical assessments of the economic and technological potentials for developing a decentralized energy system are imperative if we are to conduct an informed discussion that eschews empty slogans and focuses instead on weighing real options. Accordingly, Agora Energiewende has started a new project that will address power-system decentralization, comprehensively analysing its individual dimensions. The findings of the study will be used to highlight the regulatory options available to policymakers.
For some of our past work on this important topic, please see our study "Self-consumption with solar power systems".