Schneider Electric and Kraken have announced a strategic partnership designed to help distribution system operators (DSOs) and utilities make better use of existing electricity networks. The collaboration pairs Schneider Electric’s digital grid solutions and the EcoStruxure ecosystem with Kraken’s AI-driven orchestration platform for distributed energy resources.
What the joint solution provides
The integrated offering delivers real-time visibility of network constraints, more accurate congestion forecasting and dynamic demand-side control. Schneider Electric’s One Digital Grid Platform and EcoStruxure DERMS give operators improved situational awareness, while the broader EcoStruxure ecosystem supports demand-side flexibility with predictive optimization, intelligent energy management, distributed control and flexible load handling.
Kraken complements these capabilities by aggregating distributed assets—such as electric vehicles, home batteries and heat pumps—into a coordinated system and linking them with utility-scale storage, generation assets and industrial loads. That orchestration enables real-time consumption optimization and helps maintain continuous network balance.
Why it matters now
Rising electricity demand and expanding electrification make system flexibility increasingly urgent. Data centers alone consumed 415 TWh in 2024, and forecasts indicate that could double by 2030. At the same time, operators often lack timely, granular information on network conditions, which can lead to severe overloads. Traditional responses rely on costly, time-consuming infrastructure upgrades that slow new connections and raise system costs.
The Schneider–Kraken approach aims to provide a faster, smarter and more flexible alternative: instead of immediately building new physical capacity, operators can deploy software-driven orchestration and demand flexibility to free up existing headroom, accelerate connections for data centers and large industrial users, reduce congestion and mitigate upward pressure on consumer and industrial prices.
Economic and consumer implications
Industry estimates cited by the partners indicate that increasing demand-side flexibility in the industrial and commercial sectors alone could generate up to $1 trillion in annual value. The partnership also opens opportunities for households and businesses to take an active role: coordinated use of electric vehicles, rooftop solar, home batteries and industrial assets can optimize energy use, reduce local congestion and create new value across the energy system.
Leadership remarks
Amir Orad, Chief Executive Officer of Kraken, said: “For Kraken it is clear that the future of energy supply will be defined by rapidly increasing flexibility. Artificial intelligence not only transforms demand but also how much capacity we can unlock from existing networks. We apply that capability at scale to speed up grid connections and increase the amount of available energy. Together with Schneider Electric, we are building a more flexible, affordable and cleaner energy system for consumers and the planet.”
Frédéric Godemel, Executive Vice President of the Schneider Electric Energy Management business, added: “Utilities and grid operators face the twin challenges of maintaining reliable service, handling rapidly changing demand and making better data-driven decisions, often while operating aging infrastructure. Our goal is to create a seamless, interoperable energy system. By combining Schneider Electric’s platform-based approach with partners like Kraken, our customers can use existing assets more effectively, reduce system complexity, deploy new capabilities faster, unlock hidden grid capacity and see faster returns on their investments.”
Impact on grid investment and the energy transition
By expanding demand-side flexibility and using AI-based orchestration, the partners aim to defer or reduce the need for immediate grid reinforcement projects. That can accelerate market entry for energy-intensive customers, lower system costs and support the broader transition to renewables and electrification. In sum, the Schneider Electric–Kraken partnership promotes smarter, data-led grid operation that extends the utility of existing infrastructure while addressing growing electricity demand.
