Distributed energy: powering the future from the ground up

The way we generate and consume electricity is undergoing a revolutionary change. We’re used to thinking of power simply flowing one way from massive central power plants to our homes and businesses, but distributed energy could reshape our energy landscape.

What is distributed energy?

Distributed energy refers to electricity produced at or near where it will be used. Think of solar panels on rooftops, small wind turbines in backyards, battery storage systems, and even electric vehicles that can feed power back to the grid. Unlike traditional centralised power plants, distributed energy is typically smaller-scale, decentralised, and interconnected.

Your role in the energy system

As an individual, you can have a surprisingly significant impact on the broader energy system through distributed energy!

Generation: by installing solar panels you become an energy producer or "prosumer" (producer-consumer), not just a consumer. This reduces strain on the grid and decreases reliance on fossil fuels.

Storage: home battery systems let you store excess energy for when you need it, providing backup power during outages and helping balance demand on the grid. 

Demand response: smart technology can automatically adjust your energy use based on demand on the grid potentially earning you money through rebates, for example with Intelligent Octopus or Savings Sessions. 

Virtual power plants: the next evolution

This is where things get really interesting. A virtual power plant is a network of decentralised energy devices – solar panels, batteries, electric vehicles, and smart devices – all connected and controlled through sophisticated software. Think of it as an orchestra of distributed energy, all playing in harmony to support the grid.

Here's how they work:

1. Aggregation: The system combines thousands of small energy devices into a single, controllable network.

2. Smart management: Advanced software monitors grid conditions, weather forecasts, and energy prices in real-time.

3. Coordinated response: When needed, the virtual power plant can dispatch power from its network, just like a traditional power plant.

For example, during a hot summer afternoon when air conditioning demand peaks, a virtual power plant might:

The result? The grid stays stable without requiring expensive new power plants, and participants can earn money for contributing their stored energy.

Distributed energy represents more than just technological innovation – it’s a fundamental shift in how we think about electricity. Instead of relying solely on massive infrastructure projects, we're moving toward a more resilient, democratic, and sustainable energy system where individuals and communities play an active role.

As these technologies continue to evolve and become more accessible, the opportunity for individual participation in the energy system will only grow. Whether you're interested in energy independence, reducing your carbon footprint, or earning some extra income, distributed energy offers a way to be part of the solution to our energy challenges.