Q&A: Schneider Electric on modern energy threats, digitalisation and grid resilience

As a result of major shifts in the global energy and geopolitical landscape, grids today face a perfect storm of surging power demand, ageing infrastructure and rising physical and digital threats, strengthening the case to future-proof the energy system through grid digitalisation.

Shubbhronil Roy, VP of digital grids strategy and transformation at Schneider Electric, speaks to Power Technology about filling the gaps in the digital transformation for better grid resilience. From stronger information technology (IT) and operational technology (OT) alignment to incremental implementation strategies, Roy outlines a pragmatic yet hopeful vision for a more resilient, digital future.

Shubbhronil Roy (SR): The first is the energy transition and push for decarbonisation. There is significant acceleration in renewable energy adoption across the world. In Europe, for instance, over 40% of electricity generation is expected to be renewable by 2030.

However, current grids cannot handle this new renewable load. Around 1,700GW of renewables in Europe and 3,000GW globally are ready but cannot be connected to the grid because the infrastructure isn’t ready, leading to congestion and potential blackouts. So, while renewables increase, the grid must be upgraded accordingly.

The second is ageing – both infrastructure and workforce. Most grids in the US and Europe were built in the mid-1900s. Over 50% of transformers and substations will reach end-of-life by 2030. Similarly, more than 50% of the current workforce is expected to retire by then.

The third is cybersecurity. Cyber threats have more than doubled in the last two years, especially with escalating geopolitical conflicts like the situation in Ukraine, and grids are being targeted. Disrupting the grid can plunge entire cities into darkness, making this a critical issue.

The fourth involves major weather events – tornadoes, wildfires, storms and so on – that are becoming more common as the climate crisis progresses. Notably, up to 83% of recent blackouts were attributed to such events, causing not only human loss but significant financial damage.

Lastly, we see massive future power demand, driven by AI and data centres, population growth, industrialisation and electrification. Overall, we expect 30% more demand in the next 20 years than what we’ve experienced over the past 50.

These outlined challenges define the grid’s current and future landscape.

SR: I don’t believe there will be one clear winner among the “three Ds.” It’s about finding the right formula for the right region and people.

Globally, we observe variations in renewable adoption, cybersecurity, regulation and utility structures. For instance, the US has vertically integrated utilities – one entity handles generation, transmission and distribution (T&D) and retail. In Europe, it’s unbundled – different entities manage each part. Energy is a localized business in this sense. So, decentralisation and decarbonisation mean different things in different contexts.

Since grids are regulated, not purely profit-driven, politics and public service are also central [to what is prioritised] in the region. In the US, for example, decarbonisation is a politically sensitive term, but resiliency and affordability are universal priorities, hence becoming the drivers behind the three Ds.

SR: If I had to name one major blind spot in digitalising the grid, it would be data integration. Data is often called the new energy currency. But within utilities, we see massive silos – between departments, and even within IT and OT teams. Each system uses different data models, so there is no single source of truth.

During proof-of-concepts, we’ve found that operators often question the data itself instead of discussing what actions to take. There’s frequent disagreement: “this data isn’t correct” or “that wasn’t logged properly”. This undermines the ability to prescribe solutions based on data.

Even mature utilities struggle to build network models. It can take months because the silo problem runs deep. Utilities are starting to realise the importance of a unified data model, but the road ahead involves connecting systems, breaking down silos and ensuring consistent data across the enterprise.

SR: Historically, IT and OT have operated in silos. For example, IT might manage the customer department and billing, while the GIS (geographic information systems) mapping substations and household connectivity may sit in OT or another IT team. These are different systems, built at different times, and they rarely speak the same language.

Despite billions spent on integration over the last decade, it’s still often a patchwork. Integration isn’t holistic – it connects system A to system B but doesn’t achieve full alignment. Instead, we get duplication, mismatched data and sometimes poor outcomes.

As new systems are added – like demand response (DR) systems – questions arise again: should we build a new database or integrate with existing ones?

Utilities are massive, with sprawling infrastructure – generation, transmission, medium and low voltage distribution, industrial and customer service. Within each alone, there are multiple layers. Aligning everything is a monumental task.

Also, regulations differ across departments. OT within a utility may operate under entirely different rules to IT. It’s a legacy of how the industry evolved – regulated, conservative and fragmented.

SR: For the energy transition and grid digitalisation to progress, IT and OT must converge. We’re already seeing this shift, some by OT and others by IT, but these lines are blurring. Collaboration is key.

Now, OT benefits immensely from AI, enabled by IT capabilities. For AI to work effectively, IT and OT need a shared foundation. Utilities must establish frameworks where these departments collaborate fully. Again, it’s not about one side winning – it’s about joint effort, adapted to each utility’s maturity.

The cloud also helps. Given the critical nature of the grid and cybersecurity risks, a hybrid cloud model makes the most sense. Less critical applications can run in the cloud; mission-critical ones can stay on-premises. This combines agility and security. Our “One Digital Grid” platform embodies this principle – open, modular, secure and incremental.

SR: Substations are crucial. They move electricity through T&D networks into our homes. High voltage is reduced through substations to lower voltage suitable for residential use.

Digitisation of substations is increasing rapidly. We’re now pushing intelligence to the edge, where the data originates. Previously, decisions were centralised, but now, with localised intelligence, actions can be taken more quickly, right at the substation, without relying on the control centre.

Think of it like the human body: if your limbs could react independently without waiting for signals from the brain, response times would be faster. Substation reaction delays can range from milliseconds to minutes when not everything is digitised and some data is still collected manually. Edge intelligence reduces that lag.

Another emerging concept is the virtual substation, where hardware functions are increasingly replaced by software. With AI and modern technology, intelligence itself will become a commodity.

SR: Definitely. One major lesson came from COVID, during which companies with robust digital infrastructure and strong business continuity plans thrived, while others struggled. That period highlighted how essential digitalisation is for resilience.

Post-COVID, we saw a significant uptick in digital transformation, not just in energy but across industries. Companies across all sectors realised they needed to be prepared for disruptions.

Another lesson from sectors such as food and beverage, FMCG and pharmaceuticals is the shift away from large “Big Bang” digitalisation projects. Instead, it should be about stepwise implementation and use case-driven development.

Our company has even banned the word “pilot” internally. It’s now about real testing, with real customer data, for real outcomes. This approach has allowed us to help our partners; for example, we helped Nestlé digitise hundreds of plants with impressive efficiency and continuity gains.

SR: Resilience is no longer optional. Take the Iberian Peninsula incident, for example: it took 13 hours to restore the system, despite good infrastructure and protocols. This showed current systems aren’t adequate for future demands. Grids were originally built for one-way energy flow. Now, with EVs, distributed renewables and bi-directional flow, the pressure is much greater.

Digitalisation can increase resiliency by allowing us to anticipate and act before issues occur. The need for grid visibility and predictability is only increasing – without these upgrades, the energy transition simply can’t happen.

But technology alone isn’t enough. People, partnerships and regulation are equally important. The future of grid digitalisation depends on all these aspects coming together, so this would be the next frontier.

The grid is essential to sustainability, electrification, industrialisation and climate action. We must ensure that the grid becomes an enabler, not an obstacle, of the transition.

Thankfully, awareness is growing, and I believe the next 10 years will be transformative for grid innovation. Whether it will be enough to meet net-zero goals – I can’t say. But we’re moving in the right direction.