The most common means of generating electricity in most countries around the world is via centralized generation. This electricity is generated large scale and then transmitted at high voltage via transmission lines over long distances. De-centralizing power generation would have several effects for the market.
Decentralizing power generation provides several environmental benefits by displacing electricity that is generated by large scale centralized power plants. It would also generate power were it is needed, increasing the efficiency of the resource use. This would also open the doors to more local renewable energy power generation. However, decentralized power generation may also have disadvantages. According to the International Energy Agency it has higher unit capital cost per kilowatt than a large plant. It has lower fuel economy and uses a more limited selection of fuels. For photovoltaic systems, operating costs are very low but high capital costs make it uncompetitive. “Studies by the Congressional Budget Office and the U.S. Department of Energy also point to higher costs as a possible disadvantage (Karger, 2009).
I believe that local renewable energy power generation businesses evolving in this changing landscape, as well as would be a business I can see myself creating to serve this market.
Karger, Cornelia, Hennings, Wilfred. Sustainability evaluation of decentralized electricity generation. Renewable and Sustainable Energy Reviews. Volume 13, Issue 3, April 2009, Pages 583-593.