The electric power sector has evolved over a century with the "bulk power system" at its center, connecting large centralized thermal plants to major load centers.
This model is increasingly being challenged in a number of countries notably in isolated, expensive-to-serve areas such as remote islands, as locally produced energy, mostly from distributed energy resources and hybrid systems can meet the localized loads less expensively and in far cleaner ways
The author will explain how the historical “utility” model can -- and in some case is -- being challenged and replaced with hybrid systems with localized and distributed energy resources.
Islands and remote areas which are expensive and hard to serve provide prime examples but in many sunny places with high retail tariffs and an abundance of detached homes local communities are forming hybrid systems that can serve local demand better and cheaper than the alternative model
This suggests that the future of the power systems is gradually shifting to alternative systems where the "traditional" bulk delivery network, transmission and distribution -- will become less important, assuming the role of "residual" provider of backup, firming or balancing services
A simple "back-of-the-envelope" calculation suggests that a typical house with rooftop PV and a battery in a sunny place such as HI, CA, AZ, NM, Australia or many other places can operate self-sufficiently for 90+% of hours in the year without any need for grid-supplied electricity
Add a bi-directional EV and the 90% number becomes even higher
As such examples illustrate, the "traditional" bulk power system becomes a "residual" provider of back-up, firming and balancing service in such a case
The author explains the implications of such developments, especially relevant to isolated islands, and the emerging business models that will make it feasible, practical and economically viable