Industrial symbiosis has a centralizing effect on collaborating industries, which stand to gain most if they are in close geographic proximity.
But, what can be most effectively centralized and why? Is it always most effective to be centralized?
Obviously not!
Owing to transportation losses, electrical grids could potentially see the largest gains from decentralization. However, such process is fraught with technical difficulties and increasing operating costs, as well as with existing infrastructure that has been designed for large, centralized power stations that generate electricity from non-renewable sources.
An alternative to this problem is the introduction of smart grids that benefit from information technology. Information technology allows for cooperation among distributed energy sources, permits local control of resources and marketing of these resources on the global stage. Information technology also has the potential to mitigate the effects of intermittent generation that characterizes some renewable sources by providing rapid responses to changes in generation, transmission, distribution, and demand for electricity.
Palensky & Kupzog (2013) make the case for implementation of smart grids not only on environmental grounds, but also in terms of grid reliability and security requirements. They also detail how smart grids can be integrated into existing systems and can eventually replace aging infrastructure.