What is Missing in the Rush to an All-Electric Society

The landscape of power generation and consumption is undergoing a rapid transformation.

On one hand, technological advancements and the increasing electrification of various sectors to support the energy transition are driving a significant rise in electricity demand.

In 2015, electricity accounted for 18% of final energy consumption. By 2023, this share is estimated to have reached 20%. However, to meet global decarbonization targets, the rate of electrification must accelerate significantly. According to the IEA’s (International Energy Agency) Net Zero Emissions by 2050 Scenario—a pathway aligned with limiting global warming to 1.5°C—electricity’s share in final energy consumption needs to approach 30% by 2030, and 60% by 2050. 

This must occur in a context wherein the adoption of renewable energy sources and the shift toward decentralized production—where energy is generated closer to the point of consumption, reducing reliance on traditional, centralized power plants—is fundamentally reshaping the power supply.

The pressing urgency of the energy transition away from fossil fuels and the rise of an all-electric society expose a critical imbalance: electricity demand is escalating, while distribution networks are expanding at a much slower pace, unable to keep up. As Eurelectric aptly states, “Connection requests are increasing faster than grid modernisation”3, a concern that is now frequently echoed in the international press.

For instance, the number of electric cars is rapidly outnumbering power capacity forecasts. “By 2030, EVs will represent more than 60% of vehicles sold globally, and require an adequate surge in chargers installed in buildings.”, notes the IEA. On average, EVs consume about 0.2 to 0.3 kWh per kilometer, with peak charging times posing additional strain on the grid.

While many countries have set ambitious targets to phase out internal combustion engine vehicles, they invest in new grid infrastructure and time-of-use pricing strategies. However, these approaches alone may fall short: “Failure to achieve massive amounts of additional grid capacity [with new and modernized infrastructure] would jeopardize 74% of prospective connections in key decarbonization technologies such as electric vehicles (EVs), heat pumps and renewables” writes Eurelectric. 

We are not just going through an energy crisis. We are experiencing a supply and demand crunch. A new technological paradigm is therefore essential to meet the growing electricity demand. This challenge goes beyond environmental and economic considerations, carrying significant social implications as reliable access to electricity must be ensured for everyone. In its report “Electricity for the 21st Century”, the International Electrotechnical Commission (IEC) states, “Direct Current is a disruptive technology that fundamentally accelerates energy access and improves energy efficiency.”

Energy experts unanimously agree that DC is the critical enabler for a successful energy transition. Indeed, direct current (DC) has the potential to revolutionize our energy systems and consumption patterns. By enabling smart power management at the level of a building or an installation, it is possible to decrease the demand for feed-in power capacity from the public grid by 2 to 5 times, without impacting the quality of life of the building’s users.