Distributed energy aims to decouple profits and consumption so that power companies have a greater incentive to invest in energy-efficiency technologies that drive distributed-energy networks.

FORBES: Magazine Article

He also stressed that the enhanced planning is technology neutral, meaning planners should consider alternatives to building transmission lines, including energy storage technologies and distributed generation, where energy generating devices are placed close to demand.

FORBES: New Transmission Lines: Coming to an Area Near You?

Unlike traditional "centralized" systems, distributed energy relies on small power-generating technologies like solar panels or ultra-efficient natural-gas turbines built near the point of energy consumption to supplement or displace grid-distributed electricity.

FORBES: The Answer To The Energy Problem

In the area of renewable and distributed energy resources, which are prone to extreme variability, members can leverage predictive and optimization technologies, increasing the accuracy of their forecasts to balance the supply and demand of electricity and take measures that ensure system reliability.

ENGADGET: IBM announces Smarter Energy Research Institute, aims to improve energy grids (video)