Reimagining grid & prosumer for sustainable impact
- By Nadège Petit
- 11 Apr 2025
- 4 min read
of global greenhouse gas emissions generated by energy infrastructure
of CO2 emissions due to use of fossil fuel - coal, oil and gas
warmest year on record
According to the International Energy Agency, the production and consumption of energy is responsible for 75% of global greenhouse gas emissions, primarily due to fossil fuels — coal, oil, and gas — which account for 90% of CO2 emissions.
We are also facing energy security risks and a lack of resilience against severe weather events, as demonstrated by the series of heatwaves, floods, wildfires, and storms affecting various regions worldwide. Notably, 2024 was declared the warmest year on record by the European Copernicus Climate Service.
The stability of both the economy and the environment is crucial for the health of businesses and communities. Fortunately, we already have solutions at hand to make wise decisions for the future, and we must accelerate their deployment.
Energy is a basic commodity, and having a reliable supply is vital to economic progress.
Elena Bou, Innovation Director at InnoEnergy, highlighted in the “Grid and Prosumer” episode of NBCU Catalyst docuseries “Reimagining Industries for Sustainable Impact” how energy also influences our values, culture, habits, and environmental impact.
For instance, the growth of the oil and gas industry has been linked to increasing population and a culture of consumption, contributing to crossing planetary boundaries (including climate change).
As the global economy grows, so does energy demand, driven by factors like electrification, emerging market growth, and adoption of artificial intelligence. These evolutions place a significant strain on our energy system, underscoring the urgent need to digitize, decarbonize and future-proof it to enable an equitable energy transition. This required energy transition also necessitates a shift in mindset. Reducing carbon emissions, conserving water and resources, and building for reliability are essential for growth today.
Our methods of producing and consuming energy are changing fast. The concept of the prosumer — both a consumer and producer of energy — has evolved from a buzzword to a tangible reality over the past two decades.
New technology allows customers to produce, consume, and manage their own electricity, bringing about the 'energy prosumer' movement. By harnessing energy generated from on-site solar panels, and stored in batteries and electric vehicles (EVs), they can utilize locally and sustainably produced power.
This approach not only enables the use of renewable energy but also offers the flexibility to sell excess power back to the grid. At scale, this can ensure modular and affordable energy supply for businesses and communities. For example, in the United States as of February 2024, 4.2 million homes have rooftop solar panels, and a new solar project was installed every 54 seconds throughout the year.
Technologies like home energy management systems (like Schneider Home), Microgrids, Distributed Energy Resource Management Systems (DERMS), coupled with Virtual Power Plants (VPPs) and demand response programs (from companies like Uplight) are enabling a holistic grid to prosumer approach - empowering utilities and energy prosumers alike to enhance resilience, realize cost savings, and reduce their carbon footprint to shape a more sustainable future.
Home energy management systems
Microgrids
Distributed Energy Resource Management Systems (DERMS)
Distributed Energy Resource Management Systems (DERMS)
Virtual Power Plants (VPPs)
Demand response programs
As the energy landscape evolves with the rise in prosumer technologies and distributed energy resources, the traditional model is shifting to a bidirectional framework, creating a shared energy economy that enables greater energy resilience and harmonious development of our communities.
The backbone of this evolution is the electric grid, which needs to be modernized to support future energy demands and our vision for a clean energy future.
But modernizing the grid is a complex, expensive, and time-consuming process. To meet countries’ national climate and energy goals, 80 million kilometers of power lines will need to be added or replaced by 2040, requiring significant operational and regulatory changes, and doubling grid investment to over 600 billion USD annually by 2030.
Addressing this transition will require an all-encompassing technological approach. We have already seen remarkable success stories from clients leveraging our IoT-enabled EcoStruxure solutions across various segments, including buildings, utilities and data centers.
We are also leveraging innovative technologies that accelerate the energy transition, such as virtual power plants, which are networks of energy resources that collaborate to provide grid power. They can quickly add significant surge capacity and flexibility to the grid, and when integrated into an advanced distributed management system, the resulting automation is a game changer.
As Sophia Mendelsohn, Chief Sustainability and Commercial Officer, SAP says in the docuseries: “we will not achieve a more sustainable energy system by shrinking but through growth, with the help of AI and smart technologies”.
I firmly believe that AI will be at the core of the modern electrical grid, using the vast amount of data collected to develop predictive models of energy production and consumption and manage distributed resources accordingly.
But to make the energy transition a reality, we need collaboration across the entire ecosystem. Utilities, grid operators, energy management companies, industries, and prosumers must embrace new solutions that transform our relationship with energy, ultimately benefiting businesses, communities and our planet. Let us work together for a decarbonized, cleaner and more resilient future.
Watch the Grid and Prosumer episode of our “Reimagining Industries for Sustainable Impact” docuseries with NBCU Catalyst.
To learn more about digital and AI solutions in action for sustainability and efficiency, explore our full docuseries.
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