Smart Grids as a Way to Democratize Energy

Abstract

We are witnessing a paradigm shift in energy access. Energy security governance is decentralizing. Electricity consumers are becoming prosumers, namely consumers who are also producers, of (renewable) energy and using that energy in a smarter and more efficient manner. In other words, citizens are starting to become less dependent on energy companies for energy security. This change will likely be the mega-trend of the twenty-first century, leading to a paradigm shift in global environmental governance.

Keywords: smart grids, energy decentralization, energy democratization

JEL Classification: K32, K33, Q01, Q2, Q4