The Future of Electricity

The report argues that the electricity system is undergoing a transformation driven by electrification, decentralization, and digitalization. It proposes an 'actionable framework' based on four principles: redesigning regulatory paradigms, deploying enabling infrastructure, redefining customer experience, and embracing new business models. The document highlights the potential for electric vehicles, distributed energy resources (DERs), and smart grid technologies to unlock significant economic value, while warning of the risk of stranded assets if the transition is not managed effectively.

• The transformation of the electricity grid is driven by three converging trends: electrification of sectors like transport and heating, decentralization through distributed energy resources (DERs), and digitalization of the grid and end-user devices.
• Grid edge technologies could unlock more than $2.4 trillion in value over the next 10 years by increasing system efficiency and optimizing capital allocation.
• Electric vehicles (EVs) are expected to become economical without subsidies in many countries by 2020, driven by battery costs falling from $1,000 per kWh in 2010 to below $300 in 2015, with further projections to drop below $200 per kWh by 2020.
• The adoption of EVs is forecasted to reach 25% of new global car sales by 2030 and 35% by 2040, potentially contributing to the UNFCCC Paris Agreement target of 100 million electric cars by 2030.
• Distributed generation, primarily solar PV, has seen significant growth with global installed capacity reaching 260 GWp in 2015 and a projection to surpass 700 GWp by 2020.
• Energy storage is critical for managing the 'load duck curve' caused by renewable generation; for example, California is estimated to need about 5 GW of storage to smooth its load curve.
• Energy efficiency is identified as the lowest-cost way to meet resource needs, with the IEA estimating that every dollar spent on efficiency avoids more than $2 in supply investments.
• Demand response can significantly reduce grid infrastructure investments, with some estimates suggesting a 10% reduction in necessary annual investments in the US grid.
• The report recommends a shift in regulatory revenue models toward 'outcomes-based regulation' and a 'total expenditure' (totex) approach to remove the bias toward capital investments in network infrastructure.
• Digitalization is hindered by a lack of technology standards, outdated regulation, and a lack of clear legal structures regarding the ownership and sharing of customer and distributed resource data.

APA

World Economic Forum (2017). The Future of Electricity. http://www3.weforum.org/docs/WEF_Future_of_Electricity_2017.pdf

Chicago

World Economic Forum. The Future of Electricity. 2017. http://www3.weforum.org/docs/WEF_Future_of_Electricity_2017.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=The Future of Electricity |date=March 2017 |url=http://www3.weforum.org/docs/WEF_Future_of_Electricity_2017.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2017future, author = {{World Economic Forum}}, title = {{The Future of Electricity}}, institution = {World Economic Forum}, year = {2017}, month = mar, url = {http://www3.weforum.org/docs/WEF_Future_of_Electricity_2017.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }