Comment by WorldMaker

> Not every house has enough space for battery storage.

Then it becomes a building/complex/neighborhood community building problem in some cases. The shift to a properly distributed scale is that it can be bottom-up rather than top down. Also, some large scale projects may still be needed, it isn't an either/or, a mixture of provides flexibility in the long term. But you certainly need to worry about planning fewer large scale projects if you are expecting a market full of small ones.

> And management of millions of small batteries is harder than management of thousands of bigger batteries. Millions of small batteries are also vastly more expensive than thousands of bigger battery projects.

The cost is more distributed rather than being only one or two infrastructure companies in a region. The management is more distributed with more entities involved. Top-down control is harder, but in some ways that is as much a feature as a bug. Local batteries can prioritize local needs, that's a feature versus "just do what your central provider wishes". Grid-wise needs become a larger market with more players, which also means more competition and more interesting prices.