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Are small local energy grids the future of energy?

Do you believe that with new, more sustainable sources of energy that we will see more and more communities start to create their own local energy grids rather that depending on large energy companies to supply them with power? Do you think it is possible for alternative energy sources to supply these communities with enough power? What are some of the obstacles that are preventing this from taking place?

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    Dec 1 2012: I truly believe that rather having a centralized system of producing and distributing energy is full of flaws, future will be full of local production and consumption of energy. Lots of companies and organizations are working over this.
    Just a couple of days ago I saw Honda Motors working on such a project and that seems to be pretty interesting, and that gave me an idea that when system is centralized the problem associated with it also more. 1 small fault in system can leads to great damage over the entire city (usually happens in rural India, people suffer from shortage of electricity). Thus rather than having a mass production and centralized system each house/entity should produce its on energy and should be connected with atleast 5 entities nearby. So that they can share the energy.
    Earlier because of lack of science it was hard to produce energy and their were less methods to do so. But as the world comes in modern era lots of alternative energy sources are being discovered. Hence rather than making mass production of energy (it even cost much) 5 -10 house are put into a group they produce energy of themselves and also share energy among that group.

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