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The transition to a sustainable, low-carbon future is accelerating, driven by the progressive replacement of carbon-based fuels with renewable energy sources, stringent clean air regulations, and the electrification of various applications. Today, energy flows through the grid in more directions and through more devices than ever before. While this decentralization introduces complexities and challenges, it also unlocks new potential.
Everything as a Grid is our innovative approach to reinventing how power is distributed, stored, and consumed. This approach is shaping a future where homeowners and businesses can significantly reduce both the cost and environmental impact of energy. By leveraging flexible, intelligent power systems, we create new opportunities for everyone.
Global renewable adoption is on the rise. Renewables are projected to make up the bulk of the power mix into the future. Low-carbon energy sources are estimated to account for 65 to 80 percent of global power generation by 2050 with global energy demand projected to continue to increase between 11 to 18 percent by 2050.1
The highly distributed nature of renewable energy is upending the traditional power delivery model. Electricity no longer flows in one direction from the utility that generates it to those who consume it. The new energy ecosystem comprises an intricate network of “prosumers”: consumers and businesses who produce their own energy locally, use what’s needed and, in many cases, are looking to export excess power back to the grid. Furthermore, the electrification of transportation, building systems and industrial processes will drive considerable increases in demand for electrical power over the coming decades. Data centers, offices, factories and similar sites can participate in the transition via battery and thermal energy storage systems and grid-interactive uninterruptible power systems.
This will give rise to vast bi-directional electricity flows requiring a network with the flexibility to cope with higher volatility and demand.
The electrification of various sectors, including transportation, building systems, and industry, is expected to significantly increase power demand. Electricity is projected to become the largest source of energy by 2050 across scenarios, with consumption coming from traditional sectors (for example, electrification of buildings) as well as newer sectors (such as data centers, EVs, and green hydrogen)2. Meeting this additional demand with electricity from low or zero carbon sources is technically feasible. However, achieving this will require strong government support through effective policies and regulations, as well as substantial investment in research and development to lower the costs of emerging green energy sources like clean hydrogen. By supporting bi-directional power generation, storage, and energy management, we help meet demand growth and balance grid volatility, reimagining the electrical power value chain.
Businesses and consumers are increasingly adopting cleaner power initiatives. Corporate sourcing of renewable electricity has reached 465 TWh, with 165 TWh produced for self-consumption. Meanwhile, electric vehicle (EV) charging technology is becoming more affordable and accessible. By enabling the trading of self-generated clean electricity, we help reduce energy costs and allow participation in demand response programs for real-time grid balancing.
More homes, businesses, and communities are becoming self-sufficient power producers, relying less on the utility grid. They generate, store, and consume their own energy through renewable sources like solar arrays, wind turbines, microgrids, and battery storage. This bi-directional flow changes power management and mitigates impacts from outages. Prosumers can also sell excess energy back to the grid and participate in demand response programs to lower utility bills.
Digital innovation transforms data from appliances and equipment into actionable insights, enabling smarter energy management for businesses and consumers. This drives efficiencies, maximizes uptime, and manages energy footprints.
Homes, offices, stadiums, factories and data centers can now generate and store more of their own power to optimize energy costs, lower their carbon footprint and, in some cases, reduce reliance on the grid. This is Everything as a Grid.
Traditional electrical power infrastructures must be upgraded, with software and services optimizing every process, to realize new energy benefits. We enable a systems approach to infrastructure integration and the technologies that help transform power generation and distribution for homes, buildings and utilities.
Renewable and battery market shares continue to rise and play a larger role in the global power supply, even in the wake of the COVID-19 pandemic. The steady increase of competitiveness in renewables, along with their modularity, rapid scalability and job creation potential, make them highly attractive as countries and communities evaluate economic stimulus options.
The challenge lies in balancing variable renewable power and storage options against the always-there, always-on power users demand. By helping utilities, building managers and homeowners adopt renewable power and storage strategies, we're helping to make clean energy available when and where it’s needed.
As utilities improve power reliability and efficiency, they face constant security threats. We counter these with a system-wide defensive approach, focusing on malware, spyware, and ransomware. Our team exceeds international standards through rigorous training. Our “secure-by-design” philosophy and secure development lifecycle guide our innovation and design teams. Our expertise in global standards helps create safer, more efficient energy infrastructures.
The move to renewable, electrical power is accelerating. But you don't have to navigate the challenges of the energy transition alone. Discover how we're helping customers around the world simplify the shift to a low-carbon future.
References
1, 2 McKinsey Insights (September 17, 2024). Global Energy Perspective 2024 Retrieved from Global Energy Perspective 2024 | McKinsey
