The Energy Shift: How Microgrids Are Transforming Global Energy Today

Source: Ilya Likhov | · FORBES · | April 7, 2025

Currently, a revolution is underway in the energy sector. The shift is not merely about transitioning to renewable energy sources, but rather a fundamental transformation in the structure of energy systems themselves. We are moving away from large-scale, centralized generation systems, which rely heavily on massive nuclear, coal or hydroelectric power plants. Instead, the focus is shifting toward micro-distributed generation, allowing energy to be produced locally rather than transmitted over long distances.

Such a transition enables the generation of energy precisely where it is needed, eliminating the need to construct vast power plants that cost billions of dollars. The energy can now be harnessed from renewable sources such as solar and wind, making it more accessible, especially in remote regions. And what is even more important is eliminating the need to build expensive power transmission lines, which can significantly reduce the efficiency of the energy system due to huge losses during transmission. When transmitting energy over long distances, we can lose up to 30% of it. Therefore, local generation through microgrids can remove the need for transmission, avoiding large losses that greatly impact the system's stability and the cost of electricity.

Countries across Asia, Africa and Latin America are rapidly adopting solar microgrids to electrify remote regions that lack access to conventional grids, according to a microgrid market analysis. Even in North America and Europe, where energy transitions are underway, there is a growing understanding that the need to extend power lines across vast distances is becoming obsolete.