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Local Generation & Microgrids

Peer-to-peer export, virtual power plants, community solar.

9 min read · Jacob Willis, Net Zero Lead · Last reviewed July 2026


As on-site generation, storage and smart control spread, buildings and sites are evolving from passive consumers into active participants in the energy system. Microgrids and local energy networks are where this heads, and they reframe what a building can be: not just a cost centre that consumes, but a node that generates, stores, trades and earns. This lesson covers what a microgrid is, local self-balancing, peer-to-peer and community energy, virtual power plants, and demand flexibility.

In this lesson

  • 01What a microgrid is
  • 02Local self-balancing and community energy
  • 03Virtual power plants and flexibility
  • 04Sources and further reading