/31st May 2017, IEA/ The greater uptake of distributed VRE shifts the historic balance of supply and demand in the electricity network and calls for a revision of the institutional arrangements guiding low- and medium-voltage grids. The rise of distributed generation assets – dominated by the rapid uptake of solar PV – translates into the growing complexity of power flows within the distribution grid. This provokes the need for innovative approaches to the planning and operation of low- and medium-voltage grids, with technical, economic and institutional implications. On the technical side, more dynamic and bi-directional flows of electricity (from lower to higher voltage levels and vice versa) require reinforced monitoring and control capabilities as well as upgrades to infrastructure. Moreover, planning standards need upgrading to manage the uptake of large shares of distributed resources. In this context, next-generation VRE technology – such as advanced inverters – can offer technical capabilities to support and sustain safe and reliable operations in local power grids, while also reducing energy losses in the overall power system.