Grid modernization is at a critical crossroads as the utility sector grapples with changing energy demands, shifting priorities, and rapid technological advancements. Speaking at DistribuTECH 2025, Ruben Llanes, CEO of Schneider Electric Digital Grid, shared his vision for a future where technology and collaboration come together to redefine grid operations. Llanes emphasized the need for urgency and a shift from hardware-dependent solutions to software-driven ecosystems to succeed in addressing storm resilience and leveraging digital platforms.
Urgent Call for Change
Llanes highlighted the pressing need for immediate action in updating the modern grid, citing statistics such as 80% of blackouts being caused by extreme weather, demand growth accelerating 3.5 times faster than in the last 50 years, and the expected sixfold increase in Distributed Energy Resources (DERs) by 2030. He stressed that the traditional approach of simply adding more infrastructure is no longer sufficient and that utilities must embrace digital solutions to maximize existing assets. Llanes warned that the world is not waiting for utilities and that they need to adopt technology now as the grid revolution is a present imperative, not a future one.
Digitalization and Integration: The Backbone of Modern Grids
Llanes discussed the transformative power of digitalization, highlighting Schneider Electric’s Digital Grid platform as an example of the shift from siloed IT/OT solutions to interconnected systems resembling a smartphone’s operating system. He emphasized the platform’s open and modular architecture that supports hybrid cloud operations, enabling utilities to manage applications on-premises, in the cloud, or through a combination of both. Llanes also addressed cybersecurity concerns by incorporating zero-trust architecture principles and NERC CIP readiness to ensure secure operations.
The Role of AI and Data Management
Llanes emphasized that artificial intelligence is a means, not an end, for Schneider Electric. He discussed how their platform integrates 30 years of domain knowledge with AI capabilities to deliver purpose-driven and practical solutions. Llanes stressed the importance of applying AI where it makes sense and demystifying the hype surrounding it. He also highlighted the shift towards unified and collaborative data systems in utilities, with Schneider Electric’s Grid Data Hub allowing integration of data from third-party sources for real-time updates and actionable insights. Llanes emphasized the importance of collaboration in breaking down IT/OT silos and leveraging data as the common thread tying systems together.
Balancing Resilience and Sustainability
Llanes underscored that sustainability and resilience are not conflicting priorities but complementary goals. He pointed out that Schneider Electric’s focus on innovation includes both hardware and digital solutions to enhance grid stability while supporting sustainability objectives. Llanes emphasized that resilience is a primary focus for most utilities but is not mutually exclusive with sustainability commitments. He highlighted the company’s approach to grid modernization, focusing on simplicity, flexibility, and reliability as pillars that deliver measurable benefits across all three themes. Llanes concluded his session by urging utility leaders to embrace the digital grid revolution without delay, emphasizing the importance of leveraging existing technologies, fostering collaboration, and remaining adaptable to navigate the challenges of load growth and modernization.
