Renewable energy is on the rise globally, with solar and wind becoming the cheapest way of generating energy in more and more countries, according to IEA. It is also important for many countries as a key strategy for CO2 reduction and energy independence. However, an important question remains: where to install all the renewable energy sources which need significantly more space than fossil-based energy production? Is centralized or distributed best?
The advantage of centralized energy production by renewables is in the very low cost of big utility solar power plants compared to distributed installations. However, this advantage slowly weakens with the rising cost of distributing the centralized energy.
In addition, solar power plants are competing with the use of farmland, which directly leads to other strategic problems of the future use of land.
Distributed solar energy, for example on private or commercial buildings, has the clear advantage that energy is produced where it is also used.
