I'm not convinced that local LLMs use less electricity either. Per token at the same level of intelligence, cloud LLMs should run circles around local LLMs in efficiency. If it doesn't, what are we paying hundreds of billions of dollars for?
I think local LLMs will continue to grow and there will be an "ChatGPT" moment for it when good enough models meet good enough hardware. We're not there yet though.
Note, this is why I'm big on investing in chip manufacture companies. Not only are they completely maxed out due to cloud LLMs, but soon, they will be double maxed out having to replace local computer chips with ones that are suited for inferencing AI. This is a massive transition and will fuel another chip manufacturing boom.