Decentralized energy is locally generated energy; for instance on office buildings, warehouses, homes or apartment buildings. The energy is being produced right where it's being consumed.

In a decentralized energy system many thousands of units each provide a small portion of the energy needed, instead of a few power plants each providing enormous amounts. This has great advantages:

It is clean energy
Decentralized renewable energy is often almost entirely harnessed from renewable sources. Solar panels, micro wind turbines and heat pumps take energy directly from the surroundings and convert it into electricity and heat. During this process no CO2 is being emitted. Also, these energy sources are inexhaustible and therefore truly renewable. Together with the renewable sources we also apply hydrogen fuel cells and heat pumps which convert energy into heat and/or electricity in a highly efficient and clean manner.

It is efficient energy
In the traditional energy-infrastructure, almost 60% of the energy is lost during conversions and transport! This means that we are only able to use 40% of the energy that is stored in the fuel. With decentralized energy less conversions and virtually no transport takes place. The total output is also strongly improved by combining heat and power production (co-generation). This method minimizes losses and improves the overall output by tens of percentage-points.

Conscious production = cautious consumption
Once an individual, entrepreneur or home-owners association starts to generate energy locally, they become involved and aware. Conscious consumers become cautious consumers. Therefore, local energy production does not only reduce CO2 output from centralized fossil based energy production, it also helps to reduce consumption overall.

It is reliable energy
Since in a decentralized energy system many thousands of units are generating electricity instead of a few power plants, massive power outages can no longer occur. When a unit fails, surrounding units will take over and bear the load of the failing unit. Giant power problems therefore will be a thing of the past.

Controllable costs
But also in a financial sense decentralized energy is very reliable. Since most energy is generated locally from renewable sources, the dependence on an ever rising oil price will decrease. The oil price nowadays is based on oil scarcity, politics or even the weather. This causes strong fluctuations and permanent higher levels. In a decentralized system the dependence will diminish and the energy costs will become controllable.

Scalable infrastructure
A decentralized energy infrastructure is much more scalable than our current system. Power plants, high tension networks and city heating systems don’t allow for gradual increments in size. Changes are always massive and costly. A decentralized system however is easily scalable because the requirements for the networks are far less demanding. Moreover, the capacity can be increased in small steps; building by building if needed.

Achievable today
Decentralized renewable energy is not futuristic; it can be realized today. It uses proven technology and the energy efficiency is well predictable. The financial returns will improve over the coming years due to rising energy rates and increased government support. Also, this investment holds its value very well. Both financially and technically it is possible today; a real chance to support the energy of the future.