A review of dynamic changes in complementarities and transition pathways toward distributed energy resource–based electrical system

•Complementarities and transition pathways toward renewable-based electrical systems differ by grid paradigm.•A literature review of distributed energy resources is presented.•The required changes in complementarity elements are identified.•Transition pathways toward distributed- and renewable-based systems are mapped. The global increase in renewable energy share and grid-resilience risks posed by climate change make distributed energy resources (DERs) a key priority for sustainable energy. While previous studies have explored the required changes for achieving a renewable energy source (RES)-based system, they have paid little attention to different transition strategies based on grid paradigms and their adaptability to local contexts. This study fills this research gap by showing transition pathways toward DER- and RES-based systems through a literature review of DERs, focusing on complementarity elements in electricity systems. We found that the transition pathway must be associated with changes in the following three complementarity elements: (1) the expansion and empowerment of prosumers; (2) the design and arrangement of the energy market and its mechanism in favor of the DER-based system; and (3) the adjustment of tasks and functions of existing stakeholders. These findings make a novel contribution to arguments about incumbents’ sustainability transitions, particularly incumbents’ adoption of new business models and adaptation to new institutions.