Andrea Quarteroni, DC Applications Leader at Schneider Electric, argues that blending AC for generation/transmission with DC for storage and end-use can cut losses, simplify prosumer microgrids, and build a more resilient power system.
The International Energy Agency, anticipates that between 2024 and 2030, the world will see an increase of more than 5,500GW in renewable energy capacity – a leap nearly triple the growth experienced from 2017 to 2023. As the global energy mix shifts, our approach to distributing electricity must also progress.
For decades, alternating current (AC) has been the standard for distributing power. Its widespread use is due to the ease with which it can be produced in power stations using alternators, its simple voltage conversion through transformers, its efficiency in transmitting electricity over vast distances, and its suitability for running sturdy asynchronous motors.
However, as renewables take on a larger role in today’s energy mix, the grid is being confronted with new and complex hurdles. The extensive blackout across the Iberian Peninsula in April 2025 was a stark illustration of the weaknesses in our current electrical systems. Such incidents make it clear that there is an urgent need for distribution networks that are safer, more dependable, and resilient enough to keep vital services operational during unforeseen events.
At the same time, the prosumer trend is gaining traction. More individuals and businesses are generating their own electricity using technologies like solar panels, and importantly, these renewable sources typically generate direct current (DC).
Entering a transformative phase in 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 localised, 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.
Inside the rise of prosumers
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 centres, 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 organisations 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 centres, 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.
This isn’t the case with DC models. These can require 50% less cabling in a microgrid installation because they can use thinner wires by avoiding the skin effect in large cable cross sections, where AC flows along the surface of a conductor, rather than evenly throughout. In addition to also operating at higher voltages and thus not needing to manage the reactive power flow and harmonics, the total current flowing through the cables is 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 defining 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.
Why DC matters
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-powered.
At the system level, further efficiency gains can be achieved by minimising unnecessary AC-DC conversions, reducing energy losses, and optimising 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% energy saving and a 50% 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% to 20%, 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% reduction in CO2 emissions compared to AC.
Having onsite 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.
Dual currents: shaping the next generation of power
The Horizon 2020 PROSEU project estimates that by 2050, prosumer-driven technologies could supply as much as 89% of residential electricity. A significant portion of this output will rely on DC. These figures are impressive, especially considering they reflect just the residential sector. There’s also growing interest among businesses to transition to DC given its proven ability to cut energy consumption by up to 30%.
AC originally became the standard for large-scale electricity generation and distribution, thanks to its suitability for those applications. However, as distributed, small-scale energy generation becomes more widespread, DC is becoming more important as it’s simply a better fit for these new scenarios.
Looking ahead, AC and DC are poised to complement one another, serving not as competitors, but as the foundational currents that will drive the future of energy.
