In response to growing concerns over the vulnerability and rising demand on large centralized power grids, a Swedish entrepreneur has launched an initiative to test whether decentralized, smaller-scale electricity grids can reduce costs and improve reliability. The project, based in Lund, Sweden, aims to create local microgrids that generate, store, and share electricity on a smaller scale, potentially transforming how power is distributed and consumed.

The effort was prompted in part by the large-scale outages in Ukraine following Russia’s 2022 attacks on its power infrastructure, which left millions without electricity, heat, or water during winter. Jonas Birgersson, the founder of the energy startup ViaEuropa and a veteran of the telecommunications industry, views this as revealing the fragility of Europe’s vast, aging power networks. His approach focuses on developing independent microgrids that can operate both autonomously and in coordination with one another, thereby mitigating the risk of continent-wide blackouts caused by technical faults or attacks.

Birgersson’s company has formed a partnership with a Swedish housing association managing roughly one million apartments to implement and expand these local grids. A demonstration site consisting of a mixed-use apartment building has been operational since April 2023, utilizing rooftop solar panels and battery storage to supply electricity to residents and tenants. The next phase involves retrofitting a public housing complex of 10 buildings to incorporate decentralized energy production and management technology.

Experts view the concept favorably, highlighting the efficiency and resilience of decentralized grids compared to traditional centralized systems, which are increasingly strained by rising electricity demand from electric vehicles, data centers, and other technologies. A European Union–funded project called SAFEr GRID is exploring the feasibility of linking numerous microgrids across the continent to create a stable, flexible network less prone to large-scale failures. Antonello Monti, a researcher involved in SAFEr GRID, notes that smaller, interconnected grids could prevent local issues from cascading into widespread outages.

While decentralization requires a significant departure from established infrastructure models that have dominated for over a century, proponents argue that the benefits are compelling. Smaller grids tend to incur lower construction and operating costs and facilitate the integration of renewable energy sources with minimal overload risk. They could also be expanded incrementally and managed digitally in a manner similar to data routing on the internet, a comparison Birgersson frequently draws from his experience in the fiber broadband industry.

Despite its innovative approach, the transition to decentralized power grids faces hurdles, particularly in persuading industry and regulatory bodies to adopt new systems. The European Union’s Grid Action Plan supports modernization efforts aimed at increasing digitalization, decentralization, and flexibility. NATO’s research division is also examining decentralized grids for their potential to enhance energy security.

Lund’s reputation as a scientific and technological hub, hosting projects like the European Spallation Source, provides a fertile environment for Birgersson’s experiments. The project exemplifies how established advances in power electronics and digital management could repurpose existing infrastructure, such as mid-20th-century public housing, for a more resilient energy future.

For Birgersson, the success of his local projects could serve as a prototype for wider adoption across Europe and beyond. “If it works here, it’s going to be a slam dunk in the rest of Europe,” he said, underscoring the growing interest in decentralized energy as a solution to the challenges facing modern power systems.