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Electricity transmission and distribution can be about half the delivered cost of electricity. You can add to this energy losses from centrally generated electricity, which are on average around 10%, but can be as high as 25%.

There are already places where locally generated energy is cheaper than utility-supplied energy, and this will only increase over time as the costs of solar and storage continue to decline.

Where I live in Western Australia the local utility is trying to get ahead of this trend by cutting the network and deploying stand-alone power systems to customers on the edge of the power grid.



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