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Decentralised power grid system paving the way for a clean energy transition

EPR Magazine (Electrical & Power Review)

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February 2025

The Decentralised Power Grid System (DPGS) encourages consumers to participate in energy efficiency and demand-side management programmes, reduces energy losses, and enhances energy security, affordability, and reliability.

Decentralised power grid system paving the way for a clean energy transition

Decentralised Power Grid System (DPGS) can operate in the main grid, allowing connections from Distributed Energy Resources (DERS), i.e. low-carbon or RE sources, to supply power over shorter distances to local communities. DERS include wind, solar, micro hydel, geothermal, biomass, Combined Heat and Power (CHP) and battery energy storage systems. Tie-in controls with the main grid allow DPGS to draw power when DERS are not generating and export power to the main grid when demand is high, in a bidirectional flow of electricity.

Centralised, fossil-based generation requires huge capital investments in electricity grids for bulk evacuation of power from coal and gas plants. It needs investments in infrastructure for generation (huge fossil fuel and nuclear power plants), transmission (long-distance HV towers and power lines), distribution (MV and LV substations, poles and power lines), supply (metering, communications and billing), and complex protection systems. DPGS is situated close to the load centres, which reduces the impact of grid failure, encourages low carbon generation and cuts down transmission losses.

How does DPGS benefit energy transition?

Reliability: DPGS operates near the load. It can export power to the main grid in a bidirectional flow of electricity during peak demand. In island mode, DPGS works independently by drawing power from DERS to maintain supply. When DERS are unavailable due to local constraints or weather conditions, the decentralised grid can draw power from the main grid to maintain the electricity supply. Surplus renewable energy can be stored in battery storage systems for later use, to balance supply and demand, and regulate electricity price.

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