The Growing Decentralization of Power Grids
Image Source: Artinun/stock.adobe.com
By Mark Patrick, Mouser Electronics
Published November 12, 2025
Over the last three decades, the rise of smaller renewable energy sources, such as photovoltaic (PV) solar panels and wind turbines, coupled with smart grid technology, has fundamentally altered how homes and businesses interact with the power grid—with both now consuming and generating electricity.
This fundamental shift—the decentralization of power generation—is changing how national grids function, altering the relationship between homes, businesses, and electricity suppliers. Although this transition is already underway, the International Energy Agency (IEA) projects that over 100 million households will feature rooftop PV solar panels by 2030, a substantial rise from today’s 25 million.[1]
Therefore, the decentralization of power has only just started, and for electrical engineers, several new challenges and opportunities are on the horizon. In this article, we will explore the shift in national power grids and analyze the technical and societal implications.
The Factors Driving the Evolution of Power Grids
The growing decentralization of power grids has been driven by several factors, primarily centered around the limitations inherent in centralized power grids and the unique benefits of decentralized power.
One key driver for decentralized energy has been the development of smaller renewable power sources. Achieving energy independence before the rise in popularity of solar panels and small wind turbines meant deploying some form of electric dynamo power generator, such as a gas-, coal-, or water-driven turbine. These generators require extensive physical resources while potentially introducing significant safety, technical, and social ramifications.
Another primary driver behind decentralized energy production is the increasing need for more power. Meeting this rising demand with large, centralized power plants requires significant planning, resources, and time, with nuclear power plants requiring around six to eight years to construct and commission.[2]
Smaller decentralized energy resources (DERs) can be deployed much faster: Large-scale solar farms typically take just one to three years to bring online,[3] whereas smaller residential and industrial solar installations (Figure 1) take between six and 18 weeks on average.[4] In many cases, it is more straightforward and more cost-effective to address increasing energy requirements with numerous smaller distributed sources than with a single centralized one.
Figure 1: Small commercial solar installations, like the one shown, can be installed in just a few days. (Source: anatoliy_gleb/stock.adobe.com)
The declining costs and improved efficiency of renewable technologies, paired with rising electricity prices, have also made solar PV and wind power increasingly attainable. Advancements in energy storage and management technologies are further enhancing the viability of distributed renewable energy.
The Rise of Decentralized Power
The increasing demand for decentralized power results from large-scale trends and advancements in renewable energy, power electronics, and battery energy storage systems (BESS). Electronic innovation is helping to create new opportunities for DERs by increasing system efficiency, intelligence, and safety, while also reducing packaging considerations and costs.
PV Solar and Wind Turbine Developments
In the early 2000s, typical residential and commercial PV solar panels had an efficiency of approximately 15 percent.[5] Since then, developments in PV cell design and fundamental shifts in material composition have helped to increase this value, with today’s panels typically offering around 20 percent.[6]
Oxford PV, a University of Oxford spin-off, recently set a world record with its commercial-size perovskite-on-silicon tandem solar cell, achieving an efficiency of 28.6 percent—a significant step suggesting that even greater efficiency improvements are possible.[7] Increases in panel efficiency can help drive DER adoption by reducing the area needed for a viable solar deployment (provided panel costs remain flat).
Wind turbines are also seeing significant development, with emerging bladeless turbines (Figure 2) capable of overcoming several persisting challenges. The absence of traditional rotating turbine blades simplifies and enhances the safety of system integration into buildings while also decreasing maintenance expenses and mitigating bird strikes. These benefits can help companies deploy wind turbines in new areas, including closer to solar panels or smaller residential locations, where planning restrictions often prevent the installation of turbines with rotating blades.
Figure 2: Bladeless wind energy uses wind oscillations and alternators to generate electricity without blades. (Source: VectorMine/stock.adobe.com)
BMW’s Oxford Mini plant recently added the world’s first stationary energy system from Aeromine Technologies to complement its existing solar power setup.[8] By manipulating airflow with its aerofoils, the turbine creates a low-pressure zone behind the unit, which drives air through its internal propeller, converting wind energy into electricity.[9]
Vortex Bladeless, a Spanish startup, is developing a turbine-less system for wind-powered electricity generation. This system harnesses vortex shedding, the creation of swirling vortices by wind flowing around a cylinder, to induce oscillation that is converted into electricity via an internal electromagnetic alternator.[10]
Advancements in Inverter Technology
Advances in power electronics, particularly the adoption of silicon carbide (SiC) semiconductors, are enhancing inverter efficiency, reducing both energy losses and thermal management requirements. Compared to traditional silicon-based devices, wide-bandgap SiC semiconductors exhibit lower switching losses, higher thermal conductivity, and greater power density.
While the latest silicon inverters can achieve 98 percent efficiency, SiC inverters can achieve around 99 percent efficiency across a wide power range, resulting in a 50 percent reduction in energy loss.[11] A theoretical 1 percent gain applied to the European Union’s total 259.99GW of solar capacity would add around 2.6GW to the total output—equivalent to 6.5 million 400W solar panels.[12]
The improved thermal performance of SiC reduces cooling requirements, allowing manufacturers to design smaller, lighter, and more reliable inverters. This reduction in size enables the deployment of DER installations in more space-constrained residential and commercial settings. These characteristics, coupled with the growing economies of scale in SiC manufacturing that lower its costs, are helping drive the creation of smaller and more efficient solar inverters that could result in a new wave of solar adoption.
BESS Evolution
Within BESSs, the shift to lithium iron phosphate (LFP) has resulted in improved thermal stability and longevity compared to traditional lithium-ion batteries. Meanwhile, new modular designs, including rack-mount batteries, offer more cost-effective and scalable installations, enabling residential and commercial users to optimize system capacity for their energy requirements.
Battery management systems (BMS) are also starting to incorporate artificial intelligence (AI) and machine learning, which can further enhance the reliability and efficiency of BESS. AI functions can better predict battery degradation, optimize charge cycles depending on environmental conditions, and dynamically manage energy flow to maximize both battery lifetime and performance.
Conclusion
DERs give businesses and homeowners alike the opportunity to achieve energy independence while enhancing their sustainability. However, as energy needs increase and national power grids become more complex, the market must provide efficient, reliable solar and wind power solutions that integrate seamlessly into homes, businesses, and the broader grid.
Sources
[1]https://www.iea.org/reports/approximately-100-million-households-rely-on-rooftop-solar-pv-by-2030
[2]https://www.sustainabilitybynumbers.com/p/nuclear-construction-time
[3]https://www.theecoexperts.co.uk/solar-panels/complete-guide-solar-farms
[4]https://www.susenergy.co.uk/how-long-does-it-take-to-install-solar-panels.html
[5]https://www.forbes.com/sites/peterdetwiler/2013/07/16/as-solar-panel-efficiencies-keep-improving-its-time-to-adopt-some-new-metrics/
[6]https://corporate.enelx.com/en/question-and-answers/are-solar-panels-energy-efficient
[7]https://www.oxfordpv.com/news/oxford-pv-sets-new-solar-panel-efficiency-world-record-0
[8]https://www.bbc.co.uk/news/articles/c07ngp4yz7jo
[9]https://aerominetechnologies.com/
[10]https://vortexbladeless.com/technology/
[11]https://www.energy.gov/eere/solar/silicon-carbide-solar-energy
[12]https://energy.ec.europa.eu/topics/renewable-energy/solar-energy_en