Power to DC and AC! Unlocking greater energy security and resilience
Posted by: electime 14th August 2025
By Andrea Quarteroni, DC Applications Leader, Schneider Electric
According to the International Energy Agency, the world is set to add more than 5,500 gigawatts (GW) of new renewable energy capacity between 2024 and 2030—nearly three times the increase seen between 2017 and 2023. As our energy landscape evolves, so must our methods of electrical distribution.
Alternating current (AC) has remained the main method of electrical distribution because it’s easy to generate in power plants using reliable alternators, simple to convert to different voltages with transformers, efficient for long-distance transmission, and well-suited for powering durable asynchronous motors. However, as renewable energy sources expand, our energy infrastructure faces new and complex challenges. The recent widespread outage across the Iberian Peninsula served as a stark reminder of how vulnerable our current electrical infrastructure can be. Such disruptions underscore the urgent need for more reliable, safe, and efficient electrical distribution systems that can withstand unexpected challenges and keep critical services running.
also seeing the rise of the prosumer movement—where individuals or businesses generate their own electricity through renewable sources like solar panels. And as it happens, renewables typically generate and operate on Direct Current (DC).
A new era of electrical distribution
Research by European Distribution System Operators (E.DSO) predicts that by 2030, up to 80% of energy consumed in homes will be DC-powered. By integrating more DC support, we can reduce energy losses, enhance grid flexibility, and support microgrids that provide localized, resilient power solutions because of their unique qualities. As grid congestion and carbon neutrality targets pose urgent challenges, DC could be the key to a more stable, efficient, and sustainable energy future.
Both energy systems have their perks: one is great for generation and transmission; the other excels at storage and efficiency.
Leveraging both will lead to a safer and much more versatile grid in future.
Understanding the prosumer movement
What exactly is a prosumer? It can be just about anything with land to spare—residential homes with rooftop solar panels, public institutions like schools, hospitals, and parks with heat pumps. Private institutions, like data centers, are often central to the prosumer movement due to their high energy demands, capital, and ability to invest in renewables. In an ideal scenario, a prosumer generates more energy than it consumes, feeding the surplus back into the grid in a bidirectional flow.
The reason more organizations are looking at prosumer models is that they can help reduce costs in a world where energy prices are high and uncertain. In 2025, European energy prices reached a two-year high. Supply is unstable and may become more so given ongoing geopolitical instability. For things like data centers, where uptime is incredibly important for reputation and customer stickiness, power outages are simply not an option—which is why onsite power generation is a boon.
For those who have embraced the prosumer model, AC setups are far more common simply because they rely on conventional technology, of which there is plenty. The problem? AC prosumer models are actually quite complex. Not so with DC models. These can require 50 per cent less cabling in a microgrid installation because they can use thinner wires by avoiding the skin , where AC flows along the surface of a conductor, rather than evenly throughout. In to also operating at higher voltages and as there it does not need to manage the reactive power flow, the total current flowing through the cables are lower. All this can contribute to simpler setups. When DC is in play, storage and energy transmission are also more efficient—but more on this in a moment.
And there’s an interoperability piece: DC connects well with modern electronics because laptops, smartphones, electric cars and many other devices already run on DC.
Because DC offers significant benefits for managing an overworked electrical grid—but current systems are not well-adapted to DC distribution—the Current/OS Foundation was established to help businesses implement DC systems by developing a unified standard for grid control and defines all system aspects for loads and sources in a DC environment.
There are many reasons to use DC in the modern era, yet its adoption among businesses has been slow—mainly due to a lack of knowledge and skills. But with recent advancements, that’s changing. As awareness grows and expertise catches up, DC is becoming a more viable and attractive option for modern energy infrastructure.
The benefits of DC power
A shift to DC power can help reduce energy waste and improve efficiency. At the top level, essential systems such as lighting, heat pumps, and elevators operate more efficiently on DC. Heat pumps benefit from this transition as their variable-speed compressors are inherently DC-.
At the system level, further efficiency gains can be achieved by minimizing unnecessary AC-DC conversions, reducing energy losses, and optimizing grid performance. This is unavoidable at times, but clever intermingling of the two energy currents can lead to efficiencies that would be difficult to achieve otherwise.
Case in point: Vinci Energies, a French concessions and construction company founded in 1899—around the time Edison and Tesla were battling it out—achieved around a 30 per cent energy saving and a 50 per cent reduction in copper electrical cabling. The goal of bringing renewables into the mix and eliminating unnecessary converters and interfaces was a success.
When renewables are in the mix, DC can really help reduce waste. Traditional power transmission and distribution systems typically suffer from energy losses ranging from 8 per cent to 20 per cent, with energy lost through heat, conversion, transformer inefficiencies, and leakage. In the case of the N470 project, the most sustainable road in the Netherlands, which is powered by a DC microgrid, it achieved a 10 per cent reduction in CO2 emissions compared to AC.
Havingonsite prosumer power from renewables also makes operators more independent and builds resilience against disruption. We operate in an unpredictable landscape and an ample, always-available energy supply is far from guaranteed, making it crucial to transition away from fossil fuels.
Of course, integrating renewable energy sources into existing grids poses challenges. The grid was set up to work with power plants providing energy to consumers, not the other way around. But with the market for DC power expected to grow from $453.9 Million in 2023 to $666.7 Million by 2030, DC is becoming impossible to ignore.
A future powered by DC and AC
The Horizon 2020 PROSEU project predicts that by 2050, 89 per cent of electricity in the residential sector could be generated by prosumer technologies. Much of this will be powered by DC. These are big numbers, and just one sector. Many businesses have a vested interest in shifting to DC power because it already has the capability to shave 30 per cent off energy requirements.
When AC won out, it was the optimal solution for large-scale power production and distribution. But as small-scale energy production becomes increasingly viable, DC is making a comeback for the same reason—it is the option under these circumstances. With the prosumer movement gaining momentum, DC technology is lighting the way forward—empowering individuals and businesses to take control of their energy future.
AC and DC may finally work in harmony—not as rivals, but as the two pillars powering the next era of energy.
