The future power grid: Managing electricity demand and supply

The electric grid has evolved slowly from isolated utilities to a complex and interconnected grid that shares peak loads and takes advantage of scale though it still relies heavily on central generation and distribution. The way grids will evolve in a country will depend on how it decides to use renewable energy. Centrally-generated renewable energy, like solar power stations in a desert, will make networks very complex. Distributed generation will result either in a different form of grid or no grid.

Central Generation to go on...
It is the most economical way to manage electricity demand and supply. But lack of an efficient grid storage system makes it difficult to manage rapid changes in demand and supply.
Central generation and distribution to multiple utilities create very complex electrical networks that are difficult to manage. But without renewable energy and storage breakthroughs, central generation will continue.

...While Smart Tech will Come in Slowly...
Future grids with built-in intelligence will manage outages better. Indian grids are well behind in this game, but a small beginning has been made with a pilot project in Pune.
Smart grid is a way of managing demand with limited supply, by making the grid more efficient. Consumers get incentives to reduce load during peak times & penalties for using excess power.
Utilities have the means of cutting of power to those who draw excessively. The smart network will extend to energy-efficient appliances.

...Microgrids will be Important
Large-scale use of renewable energy may need scientific breakthroughs. It would also need breakthroughs in storage as solar and wind energy generations are intermittent.
Distributed generation can partially offset lack of large storage.
Microgrids are small and localised grids that can be connected or disconnected from the main grid. They are highly reliable and can be managed with smart technologies.