Schneider Electric and Kraken have partnered to expand the use of electricity demand flexibility, aiming to help utilities and distribution system operators connect new loads more quickly.
The partnership centres on software that gives network operators greater visibility into grid constraints and more ability to shift electricity demand in real time. This could free up spare capacity on existing networks and reduce reliance on lengthy infrastructure upgrades.
That matters as power demand rises sharply in several sectors, especially data centres and heavy industry. Analysts cited by the companies estimate that demand-side flexibility across industrial and commercial users could be worth up to USD $1 trillion a year globally.
Electricity demand from data centres reached about 415 TWh in 2024 and is expected to double by 2030, according to figures cited by the companies. At the same time, many distribution system operators face congestion because they lack real-time visibility into conditions on local networks.
Under the partnership, Schneider Electric will provide network monitoring and forecasting through its One Digital Grid Platform and EcoStruxure DERMS. Kraken will add orchestration software that aggregates distributed energy resources, including electric vehicles, home batteries and heat pumps, and coordinates them with larger storage assets, generation and industrial loads.
The goal is to let operators shift consumption away from constrained periods and balance supply and demand more closely as conditions change. The approach could speed up connections for data centres and large industrial users by making better use of existing network capacity.
Grid pressure
Utilities in many markets are dealing with a difficult mix of ageing infrastructure, rising electrification and growing connection queues. Traditional responses often require major capital spending on substations, lines and other network assets, and upgrades can take years to complete.
By contrast, demand flexibility seeks to change when electricity is used rather than simply building more capacity. Households and businesses can contribute by adjusting consumption across devices and systems such as electric vehicle charging, home batteries, solar panels and industrial equipment.
Better use of these resources can reduce network congestion and help avoid higher system costs. The companies also argued that it can ease pressure on consumer and industrial energy bills by delaying or reducing the need for expensive upgrades.
The partnership reflects a broader shift in the energy sector towards digital tools that give operators a more detailed view of local grid conditions. It also points to growing interest in coordinating smaller, distributed assets so they can act as a single flexible resource.
Company roles
Schneider Electric has been expanding its software and control systems for utilities, grid operators and energy users. In this partnership, its role focuses on visibility into network constraints, predictive optimisation, distributed control and flexible load management.
Kraken, which describes itself as an energy technology company, will provide an artificial intelligence-based platform designed to coordinate energy resources across the grid. Its software is intended to give operators more visibility into low-voltage networks while also shifting demand in real time.
For network operators, the commercial appeal is the prospect of connecting new electricity demand sooner. Data centre developers and industrial users have increasingly found that access to power has become a limiting factor for expansion plans in some regions.
That has made grid connection speed a more prominent issue for both utilities and large power users. If operators can identify and manage unused flexibility on the network, they may be able to process more connection requests before major reinforcement work is completed.
"For Kraken, it's clear: speed to flexibility means speed to power. AI is not just a driver of demand - it revolutionizes the capacity we can get out of the grid we already have. We are unlocking that capability at scale, to boost grid connections and power growth. Together with Schneider Electric, we're building a more resilient, more affordable and cleaner energy system - for consumers and for the planet," said Amir Orad, Chief Executive Officer, Kraken.
Schneider Electric said the partnership also fits its strategy of working with specialist technology partners on interoperable energy systems. Combining grid software with external platforms can help utilities make better use of existing assets while adding new tools more quickly, it said.
"Utilities and grid operators are under real pressure to maintain reliability, respond to shifting demand and make better decisions with better data, whilst working with aging infrastructure," said Frédéric Godemel, Executive Vice President of Energy Management, Schneider Electric.
"Our aim is to create an interoperable energy system that works seamlessly. By combining Schneider Electric's platform approach with specialist partners like Kraken, we can help customers make the most of existing assets, reduce complexity, roll out new capabilities faster, unlock hidden capacity and see value sooner," said Godemel.