Direct current: Powering the path to a smarter energy future
- Yannick Neyret
- 17 Jul 2025
- 6 min
The global energy landscape is undergoing a profound transformation, driven by the accelerating demand for electricity and the pressing need for a resilient and sustainable future.
As the shift toward an all-electric society unfolds, traditional electricity distribution methods, rooted in Alternating Current (AC), are facing mounting challenges. This increasing demand, coupled with the integration of renewable energy sources, has brought the limitations of the current infrastructure into sharp focus.
Direct Current (DC), an energy distribution method once sidelined in favor of AC, is now proving to be a viable, efficient, and forward-looking alternative to meet the energy demands of the 21st century.
Electricity demand is growing at an unprecedented pace. According to the International Energy Agency (IEA), electricity's share of final energy consumption must increase from 20% in 2023 to 30% by 2030, and 60% by 2050, to align with global decarbonization goals.
This surge in demand is further compounded by the adoption of electric vehicles (EVs), heat pumps, and other electrified technologies that are essential for transitioning away from fossil fuels.
However, this shift highlights a critical bottleneck: while electricity demand soars, grid expansion and modernization lag far behind. Just to take one example, by 2030 EVs are expected to constitute over 60% of global vehicle sales, placing substantial pressure on charging infrastructure and grid capacity. As Eurelectric reports, connection requests are increasing faster than grid modernization, underscoring the urgency for new solutions.
Renewable energy sources such as solar and wind are pivotal in this energy transition, but the main grid struggles to handle their contribution, and in haphazard conditions like Portugal and Spain experienced early this year, most of the private photovoltaic (PV) installations are not able to provide power when the main grid is down.
Furthermore, the intermittent nature of renewables introduces complexities for grid stability. Solar power, for instance, peaks during the day while energy consumption tends to spike in the evening. This misalignment between production and consumption strains grid infrastructure, leading to congestion and inefficiencies.
For over a century, AC has been the backbone of electricity distribution. Its ability to transport power over long distances and power large industrial motors cemented its dominance in the late 19th century. However, technological advancements and shifting consumption patterns are exposing its inefficiencies.
The very architecture of AC grids makes them less suited to handle decentralized energy generation, such as rooftop solar panels or small-scale wind turbines. AC systems rely on centralized control mechanisms and frequency stability ensured with mechanical inertia of large generators. The diverse and distributed energy sources and loads of modern power systems have a destabilizing effect on them.
Most of today’s electronics, including computers, smartphones, LED lighting, and EVs, operate internally on DC power. As a result, AC electricity must be converted to DC before it can be used, leading to energy inefficiencies.
Compounding these challenges, at user level, “behind the meter” interconnecting more and more DC native sources with a majority of DC native loads creates unnecessary energy losses during power conversion – as every AC-to-DC or DC-to-AC conversion introduces a loss of approximately 2-5%, with some industrial applications experiencing losses as high as 10-15%.
In contrast to AC, DC offers precision, efficiency, and reliability, making it a compelling alternative for modern energy systems.
DC’s inherent strengths—such as stable power delivery, efficient energy conversion, and seamless integration with renewable energy sources—position it as a key enabler of the energy transition.
DC’s compatibility with renewables makes it the forward-looking choice for the new energy landscape. Most renewable energy sources, such as solar panels and wind turbines, generate electricity in DC. Similarly, energy storage systems like batteries operate in DC. Using DC systems to connect these sources directly to DC loads eliminates the need for multiple energy conversions, reducing losses and improving overall system efficiency.
While efficiency in energy usage is required to reduce the energy demand side, DC installations have demonstrated significant energy savings by minimizing conversion losses. For instance, connecting local DC sources directly to DC loads in a hybrid AC/DC microgrid reduces energy waste. Studies have consistently shown that this setup can decrease energy losses by 2-5%, with some scenarios achieving even greater efficiency gains.
DC systems also require less raw material than their AC counterparts. Copper cables in DC installations enable more efficient power transmission, reducing material use by up to 20%. Additionally, DC’s reliance on kilohertz (kHz) power conversion—as opposed to the 50-60 Hz standard in AC—means less magnetic material is required in transformers and other components.
Perhaps the most transformative advantage of DC systems is their ability to significantly reduce power demand on the main grid. For example, DC microgrids powered by Current/OS have demonstrated the ability to lower peak feed-in power demand from the grid by a factor of 3 to 5. This reduction in peak power—the instantaneous rate at which energy is drawn—helps alleviate grid congestion, delays the need for costly infrastructure upgrades, and enables more buildings to connect to the existing grid without compromising stability.
It’s important to distinguish between power efficiency and energy efficiency.
Dive deeper by reading “Direct Current: the smarter consumption solution to solve the energy crisis?” white paper by Yannick Neyret, President of Current/OS and Innovation Director, Power Products Division, Schneider Electric.
DC systems offer advantages in both areas: they reduce peak power draw (improving power efficiency) and minimize conversion losses (enhancing energy efficiency), making them a compelling solution for the evolving energy landscape.
And finally, DC systems provide high-quality power, free from the fluctuations and inefficiencies commonly associated with AC. This makes DC ideal for critical applications, from data centers to industrial applications. Additionally, DC systems can store excess energy locally, further enhancing their reliability and reducing dependency on the main grid.
As electricity demand grows and renewable energy adoption accelerates, the challenge of balancing supply and demand becomes increasingly urgent. Current/OS provides a practical solution by enabling buildings and installations to function as self-contained energy ecosystems.
By optimizing the use of locally generated renewable energy, these DC systems reduce reliance on the main grid: they not only require less energy from the main grids, but also do not require power compensation for stability service. This reduces the need for oversizing the main grid and helps to adapt to smaller capacity. Thus, creating a more sustainable, efficient, and resilient energy infrastructure.
The benefits of DC installations extend beyond individual buildings. At a macro level, they represent a critical step toward a more decentralized energy model. By reducing the strain on the grid and making efficient use of existing infrastructure, DC systems can help accelerate the energy transition and support the widespread adoption of renewables.
Current/OS takes the advantages of DC systems a step further by introducing a self-regulating, decentralized approach to energy distribution. Unlike traditional systems that rely on centralized control, Current/OS uses a distributed model where voltage levels dynamically indicate available power. Each device in a Current/OS DC installation operates autonomously, adjusting its energy consumption or generation based on the system’s power availability.
This approach offers several key benefits:
Scalability
Expanding a Current/OS DC installation is simple and does not require complex automation systems or IT expertise. New devices can be added seamlessly, and the system naturally balances itself without the need for manual intervention.
Resilience
The distributed nature of Current/OS installations ensures that the failure of a single device does not disrupt the entire system. Each device independently adjusts its operation, maintaining the stability and functionality of the overall installation.
Grid optimization
By reducing peak demand and ensuring local consumption of renewable energy, Current/OS installations ease the burden on the main grid. This not only reduces congestion but also minimizes the need for expensive grid upgrades.
The energy transition demands bold and forward-thinking solutions. By enabling seamless device coordination, DC microgrids using Current/OS optimize local renewable energy use, reduce grid congestion, and improve stability. This innovative approach enhances energy efficiency and accelerates the transition to renewables without compromising existing infrastructure.
The shift toward DC-powered systems is not merely a technological evolution; it is a necessary response to the challenges of the modern energy landscape. As we continue to promote and develop DC technology, we remain committed to driving innovation that empowers a sustainable future.
Our work in Current/OS underscores the importance of collaboration among stakeholders—from policymakers and manufacturers to consumers and utility providers. By defining clear standards and fostering interoperability, we can unlock the full potential of DC systems and pave the way for a more resilient and sustainable energy future.
Schneider Electric is a founding member of Current/OS, an independent, non-profit, global partnership open to all electricity stakeholders and manufacturers promoting Direct Current electrical safety, enhancing energy resilience to ensure reliable access to electricity for all.
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