John P. Banks is a nonresident senior fellow in the Energy Security Initiative at Brookings writes: “As Brookings described in an earlier commentary, while it is certainly true that there is a confluence of trends threatening the existing the utility business model, several key developments and challenges demonstrate that a more flexible distribution grid is already emerging with utilities at the center.”

• “First, the power grid in the United States is evolving to meet three critical needs.”
• “Second, a multi-year integrated grid vision is critical for resource optimization.”
• “Third, the states are leading the policy and regulatory discussion shaping the future of the electric distribution grid.”
• “Fourth, a critical element for realizing the future flexible and more distributed power grid is getting the pricing right.”
• “Fifth, the development of a flexible distribution grid will not be possible without technology and innovation.”