Distributed Energy Resources: Policy Implications of Decentralization

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The document examines the shift from centralized to decentralized electricity structures through distributed energy resources, proposing three policy pathways: analyzing cost-benefit trade-offs, reforming utility business models and wholesale markets to increase competitiveness, and fostering technological innovation to accelerate the adoption of renewable resources.

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  • The emergence of distributed energy resources, described as 'the internet of electricity,' is changing the traditional centralized structure of the electricity sector.
  • To achieve a renewable electricity future, the document recommends three specific policy actions: conducting cost-benefit and trade-off analyses of distributed energy resources, adapting utility business models and wholesale market structures to create a more competitive environment between new distributed and traditional centralized energy, and promoting innovation in services and technology to speed up the adoption of renewable and distributed resources.

Cite the original document

APA
Admin, V. D. (2014). Distributed Energy Resources: Policy Implications of Decentralization. Energy Innovation. https://energyinnovation.org/report/distributed-energy-resources-policy-implications-of-decentralization/
Chicago
Admin, Visceral Dev. Distributed Energy Resources: Policy Implications of Decentralization. Energy Innovation, 2014. https://energyinnovation.org/report/distributed-energy-resources-policy-implications-of-decentralization/.
Wikipedia
{{cite report |last1=Admin |first1=Visceral Dev |title=Distributed Energy Resources: Policy Implications of Decentralization |publisher=Energy Innovation |date=1 December 2014 |url=https://energyinnovation.org/report/distributed-energy-resources-policy-implications-of-decentralization/ |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{admin2014distributed, author = {Admin, Visceral Dev}, title = {{Distributed Energy Resources: Policy Implications of Decentralization}}, institution = {Energy Innovation}, year = {2014}, month = dec, url = {https://energyinnovation.org/report/distributed-energy-resources-policy-implications-of-decentralization/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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