The Future of Decentralized Energy Schemes with Renewable Power

The United States primarily relies on centralized power sources, which are capable of generating and transmitting large amounts of energy over long distances. However, this process is often hindered by transmission issues and can impact millions in situations where it fails to provide power. In response to this, there is a growing trend towards decentralizing energy grids in favor of implementing distributed energy resources which would eliminate transmission inefficiencies, and provide a more stable source of power for surrounding communities. Transitioning to a decentralized system also offers the opportunity to implement new renewable sources of energy to generate power in a way that is both reliable and environmentally friendly. 

Advantages of Implementation

It is estimated that around 5% of energy generated in the United States is lost through transmission and distribution between 2016 and 2020. By decentralizing this system, these losses could essentially be eliminated and further investments into transmission infrastructure would no longer be necessary.  In addition, these systems are capable of generating excess energy which can be stored for later use or sold into a wider power grid. Transitioning to a decentralized system brings a number of cost saving opportunities for energy producers and consumers. By preventing energy from being lost in transmission, energy costs overall will be lowered and see that power systems are working as effectively as possible.

Stability of a Decentralized System

When the current centralized system fails or is in need of repair, mass amounts of people are left without power. A system based on decentralized power sources ensures access to power, and has been used during power outages caused by high demand or weather. In the future, a widespread decentralized network could prevent power outages from occurring and provide consistent power for all citizens due to the ability of the power sources to store excess energy and supplement one another. 

Another benefit of a decentralized energy scheme is that it allows renewable forms of energy such as wind and solar to be implemented on a smaller scale to power the necessary infrastructure. Decentralized energy resources can be found today in homes and buildings utilizing small-scale solar installations, which make up one-third of total solar energy in the U.S. Installations such as these have cut down on consumer cost and are permitted to generate their own energy in a manner which is environmentally friendly.  

Future of Decentralization Projects

These systems offer consumers a way to customize their energy production and usage according to their need, independent from a wider system. Adopting on-site renewables to power a distributed system offers a way to implement sustainable energy and improve the reliability of power grids for all. The growth of decentralized energy production is likely to continue in coming years as technology costs continue to decrease and policy changes are made to eliminate regulatory obstacles. 


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Cooper Wechkin

Cooper is a sustainability-focused Seattle native and the founder and CEO of RyeStrategy. While a student at the University of Washington, Cooper found inspiration in businesses that operate at the intersection of positive impact and profit, leading to a personal commitment to pursue a career centered around social impact and mission-driven work. Cooper leads RyeStrategy with a simple goal in mind: to help small businesses do well by doing good. In addition to working directly with small businesses, Cooper partners with sustainability leaders at some of the world's largest organizations, in order to develop highly effective supply chain decarbonization programs. In his spare time, Cooper enjoys hiking, movies, and spending time with his family -- in 2019, he backpacked 270 miles from Manchester to Scotland.

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