Profound technology changes across the electrical grid are ushering in an era of decentralized electrons. This emerging energy cloud landscape, a concept that borrows from cloud computing, represents a range of technical, commercial, environmental, and regulatory changes that challenge the traditional hub-and-spoke grid architecture. Fueling this shift are the steady increase in distributed energy resources (DER) capacity and the continuous expansion of smart grid infrastructure. Both trends point to a future grid that will be far more dynamic, responsive, and democratized than current infrastructures allow. Ultimately, the future grid aims to deliver higher quality power. While utilities will need to adapt to this evolving landscape through business model transformation and a rethinking of traditional stakeholder engagement strategies, consumers and vendors alike will see unprecedented opportunity to enhance?and in some cases replace?the status quo. At the heart of the energy cloud evolution is a shift toward a market that is more dynamic, responsive, and transparent. The following are key characteristics of this emerging landscape: Integration of emerging technologies: DER, building energy management systems (BEMSs), and virtual power plants (VPPs) Multiple inputs and users, supporting two-way energy flows Digitalization of the electric-mechanical infrastructure Complex market structures and transactions Liberalization of markets with regulation adapting to a shifting electricity generation mix This Navigant Research white paper provides insight into the technology shifts that are fueling an energy cloud evolution. It also examines the resulting changes in the traditional utility-consumer relationship and emerging strategies that utilities are taking to both embrace change and thrive in this rapidly evolving environment.