The peer-reviewed articles and published government reports have been reviewed, based on the analysis of technical characteristics of power generation systems, eco-friendly sources of power generations, cost reduction, functionality and design of traditional grid versus smart grid. Furthermore, the innovative technologies that enable the grid to integrate with decentralized power generation system efficiently have been considered. This paper claims that in this modern era, it is arduous for traditional grid to fulfill the rising demand of electricity, along with sustainable, eco-friendly and stable power supply, as it cannot be efficiently integrated with decentralized and localized power generation systems and renewable energy sources. The result of this paper shows that decentralized and localized power generation systems are located close to end-users which decrease the transmission and supply cost of electricity. Innovative technologies allow the decentralized and localized power generation systems to be integrated with renewable energy sources which help to reduce the cost of utility services and provide clean energy.

To investigate the reasons for shifting from the old to the new energy system, the impact of this disruptive technology on energy providing firms, the demand for the new business model and the approach of the new business model in terms of creating and capturing values published peer-reviewed articles, and international energy agency reports have been reviewed. This paper encourages energy providing firms to redesign business models for commercializing new energy distribution system and to offer new services to the energy consumers for their future survival in the new trends of the energy market. These services include integrating with renewable energy sources, electric vehicle services, and demand response services to create more value for the consumers and in return gains more profit for each actor.

The services provided through integration of renewable energy with smart grid and the electric vehicle will empower consumers involvement in the electricity system which will give them more control over electricity. CO₂ production will be reduced, helping to create a clean environment and will enable operators to improve grid security and network stability. Finally, demand response services will provide multiple electricity package options to the consumers in which they can select an appropriate package according to their need which will give them more control over their electricity bill. System operators can optimize their grid operations to provide better power quality, and service providers can increase their income by offering additional services.

The electric road system is an emerging concept in this modern era. The advancement of technology has made it possible to give this concept a real shape (electric road system). However, the energy provided to the electric roads is still produced by non-renewable energy sources, which are completely unhealthy and harmful for society. Furthermore, the traditional grid is not suited to integrate with decentralized/localized energy generation and distribution systems. It is an ineffectual and environmentally extravagant system. Therefore, the preliminary contribution of this research is to introduce a decentralized/localized energy generation system based on renewable energy sources and energy distribution to electric roads through the emerging technology of microgrid and smart grid systems, which have the capability to integrate with renewable energy sources easily. Thus, producing electricity with renewable energy sources is environmentally friendly, less expensive, and available without charges. However, each source of energy has some environmental impacts and cost differences. A brief description of the environmental and cost impact of renewable energy sources (wind, solar) is also presented.

The main objective of this paper is to develop a readiness index model that can serve as an analytical tool for exploring the achievements of electrification of transportation systems. We have applied this readiness index model to evaluate the readiness positioning of China, Norway, and Sweden towards transport electrification. We have chosen these three countries as they represent diversity among countries that are in the process of adopting electrified transport system solutions. Our developed readiness index model has four key dimensions, technological readiness, political readiness, societal readiness, and economic readiness. The embeddedness of all four dimensions in one model provides a multi-perspective way of analyzing and evaluating the readiness levels of countries moving towards transforming the transportation system. Therefore, we named the model a “multidimensional readiness index.”

Globally, the transportation system is transforming from a fossil-based to an electrification system. Some countries are leading in the transformation process. Some countries are rapidly catching up to become market leaders in developing and introducing new techniques and equipment that support the transformation process in their countries. In contrast, others are still relying on their old fossil-based system or could not have enough understanding of how to deal with this complex transformation of the transportation system.

The electrification of the transportation system is not an isolated system that can be handled as a single technological element. It is a group of multiple technologies, political, societal, and economic sub-systems each of these sub-systems is embedded in each other, forming the whole system. Therefore, it is important to see and manage the system from a holistic perspective to transform the transportation electrification system efficiently. We have selected eight countries from three different continents – Asia (China, India), Australia, which is a country and continent, and Europe (Germany, Norway, Slovenia, Sweden, and the UK) to explore the transformational process of transportation electrification based on each countries’ conditions. We have chosen these continents as they are diversified in adopting transportation electrification system solutions.

Our main conclusions are that the political processes and political decisiveness are the most important, followed by the societal and economic, with technology as the fourth. The other three are difficult to obtain without dedicated and determined political decision-makers. Political decision-makers need to use economic means to support the transformation in society and industry to balance the economic disadvantage of electric systems until they pass the cost disadvantage turning point. Technology is no longer a significant barrier as it was about 20 years ago. Now, technology is available, although it can be improved. The important part is to understand how to utilize the existing technology efficiently to transform the old fossil-based transportation system into new electrification of the transportation system. Without clear and strong political support, the industry cannot be expected to initiate, finance, take risks, and take the lead in this global societal transformation.