Editorial: Power-Sector Transformation in the Face of Decarbonization, Decentralization, and Digitalization: Technology, Regulation, and Business Models

Shahriyar Nasirov^1*Claudio A. Agostini²Santiago Budría³

• ¹Adolfo Ibáñez University, Santiago, Chile
• ²Universidad Adolfo Ibanez, Peñalolén, Chile
• ³Universidad Antonio de Nebrija, Madrid, Spain

Another major driver of power system transformation is the increasing role of emerging sustainable energy technologies which are reshaping system structures, social dynamics, operations, financing mechanisms, and business models. These changes are being driven by the convergence of three globally recognized trends: decarbonization, decentralization, and digitalization-the "3Ds."Amid rising concerns about climate change and the still persistent dependence on fossil fuels, the need to decarbonize the energy sector has become increasingly urgent. This imperative has accelerated the deployment of sustainable energy technologies and the adoption of energy-efficiency measures.Decentralization through expansion of distributed energy generation is also reshaping and, in many cases, disrupting traditional electricity systems. It has become a key pillar for achieving emission-reduction targets, meeting growing electricity demand while at the same time enhancing the resilience and affordability of power systems. The emergence of costeffective battery storage technologies and the rapid uptake of electric vehicles (EVs) are expected to further accelerate this transition. As systems decentralize, energy consumers are becoming more dynamic and active participants within the grid. The impacts of decentralization extend across a wide range of stakeholders-including system operators, regulators, generators, consumers, new market entrants, energy retailers and transmission and distribution operators-and will influence broader national economies. This evolving landscape underscores the urgent need for effective coordination mechanisms capable of integrating an increasing number of decentralized resources into power systems. In this context, digitalization plays a crucial enabling role, offering advanced digital tools that facilitate the integration of distributed energy resources while enhancing reliability, flexibility, and overall system efficiency.Today's successful transformation for a sustainable future requires not only technological progress but also advances in market design, new regulatory frameworks, system operations, and innovative business models, together with new forms of community engagement. A systemic approach is therefore essential-one that integrates all these dimensions. This convergence raises critical questions that the Research Topic seeks to address by examining different interactions among three core areas: technologies, business models, and regulatory frameworks.With the growing share of distributed generation, renewable energy communities have emerged as an important business model for advancing decentralized energy systems. They allow local communities to jointly generate, share, and manage renewable energy while strengthening community resilience and environmental stewardship. However, the successful development and operation of RECs depend on multiple factors, including technical and economic conditions, as well as social aspects rooted in local historical, political, economic, and cultural contexts. The study "Why would I bother? Understanding prosumer motivations and engagement in renewable energy communities: a qualitative study of Polish photovoltaic installation owners," by Bielecki et al., analyzes the motivations and barriers that shape participation in RECs.Another study adopting a regulatory and infrastructural perspective, "Power generation overcapacity in selected sub-Saharan African (SSA) countries: political-economic drivers and grid infrastructure challenges," by Ndayishimiye et al., examines how political economy dynamics have contributed to overcapacity in the generation segment, while financing gaps still persist in transmission and also in grid expansion. Using case studies from Ghana, South Africa, and Ethiopia, the authors show that political influence, misaligned investment decisions, and weak grid infrastructure have led to system inefficiencies and significant financial strain.Developing advanced techniques and real-time optimization methods especially under conditions of high solar penetration and large-scale electric vehicle (EV) deploymentremains a major priority for ensuring system efficiency, stability, flexibility, and security. In this context, the study titled "Integration of smart charging of large-scale electric vehicles into generation and storage expansion planning: a case study in South China" by You et al. based on a radon simulation, proposes a novel generation and storage expansion planning (GSEP) optimization model. In the proposed framework, the total EV charging demand is co-optimized alongside investment and operational decisions for multiple generation and storage assets, enabling more efficient and coordinated system planning. Finally, Gulzar et al., in their study "Strategic optimization of PV-integrated fuel cell systems for energy surplus utilization in grid-failure scenarios," present a versatile control technique designed to address power system challenges in both grid-connected and grid-failure modes. Their approach employs a digital iterative algorithm to optimize the operation of a DC-DC converter, ensuring maximum power extraction from the PV-fuel cell system while maintaining operational stability.In summary, these papers collectively present diverse yet complementary techniques for addressing key challenges in power-sector transformation across core areas-technologies, business models, and regulatory frameworks-thereby offering a valuable contribution to the existing literature.