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The Central Electricity Generation, Transmission & Distribution business model for over a century has been to build and operate a base load capacity to meet the very maximum demand needed. This has created an inefficient system because central power generating plant cannot be rapidly ramped up and down and electricity cannot yet be stored on a commercial scale.
By converting to a decentralized distributed model through Smart Grid the system is able to operate bi- directionally taking distributed power from renewable and other clean sources and delivering it locally or regionally where it is demanded at any one time. In addition through pricing initiatives better control of demand can be realized and so improve base load efficiency and reduce transmission losses.
