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Toward a Distributed-Power World -- Renewables and Smart Grids Will Reshape the Energy Sector
Frank Klose, Michael Kofluk, Stephan Lehrke, and Harald Rubner

This paper presents the Europe's 20-20-20 plan and then describes how that vision can be achieved by means of integrating distributed renewable generation of electricity. However, the authors also have presented the current model of centralized generation and business model and stated that utilities would need to invest heavily in the renewal of their aging infrastructure. The authors expect that smart grid will play an important role in achieving these goals and demand supply balance. BCG's "distributed-world scenario" is used to demonstrate the impact on traditional power generation. The paper mentions about smaller CHP plants, Solar-PV rooftop installations, WhisperGen's Stirling engine, etc. in Europe to show that distributed generation has already made its way and is expected to grow at a high rate. The paper makes few recommendations for the utility companies to adapt and take advantage of this envisioned decentralized energy landscape.

Document Type:
White paper