Delivering a blueprint for grid resilience in Europe

Europe has been feeling the heat with another summer marked by record-breaking temperatures.

Regions like the Nordics endured the most severe and prolonged heatwave on record. And this is likely to only get worse. 

As temperatures soar, so does the strain on electricity grids. This year’s heatwaves have driven daily power demand up by as much as 14% across Europe. Together with thermal power plant outages, this pushed average daily power prices two to three times higher.

The consequences go far beyond higher energy bills. Increased electricity demand puts grids at greater risk of disruption, and recent events have highlighted just how significant the impact of outages can be. 

The Iberian power outage in April knocked out phone networks, froze payment systems, and disrupted millions of lives and businesses. The estimated economic impact was between €2.25 and €4.5 billion ($2.6 and $5.2 billion).

Grid resilience is no longer just about keeping the lights on: it’s fundamental to Europe’s broader goals: electrification, economic competitiveness, and a sustainable, low-carbon future. According to the European Parliament, integrating grid-enhancing technologies could potentially increase overall network capacity by 20% to 40%.

These are the priorities that I believe Europe must focus on to get there.

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Resilient grid

Digitalising the grid is the only way to truly balance supply and demand in real time, minimise energy losses, and build a more responsive, resilient energy system.

The good news? The technology we need is already here.

Solutions like automation, smart meters, rooftop solar, and Advanced Distribution Management Systems (ADMS) are ready for deployment. What’s missing is scale – and that depends on stronger, more coordinated collaboration between the public and private sectors.

An example is Schneider Electric’s partnership with the Serbian government, where a €140 million ($162 million) investment is now modernising the country’s medium-voltage grid. The project is already enhancing reliability, reducing outage durations, and cutting CO₂ emissions by improving energy efficiency – a blueprint for what’s possible when innovation meets action.

Demand flexibility

A more resilient grid isn’t just about supply, it’s about smarter demand management, especially during peak load conditions that put the grid under maximum stress.

While heatwaves are an energy challenge, they are also an opportunity to deploy flexibility solutions. During the recent European heatwaves, high daytime solar output helped supply the grid during daylight hours. But surging late-afternoon cooling demand drove power peaks that outpaced solar gains, sending daily electricity price spreads soaring to over €400/MWh. 

This volatility highlights the urgent need for better energy management.

Energy efficiency and demand-side flexibility solutions empower businesses and consumers to shift or reduce energy use when the grid is under pressure. This reduces the risk of instability while lowering energy costs and emissions.

As extreme heatwaves and other weather-related surges become more common, this type of intelligent load balancing is critical to building resilience.

Also of interest:
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Prosumer movement

We are entering the era of the prosumer, where businesses are no longer just energy consumers, but active producers, managers, and optimisers of their own energy use.

Technology is enabling this shift. Solutions like microgrids, which are localised networks that operate independently from the grid, help decentralise energy supply, reduce strain on the grid, and ensure consistent power even during disruptions.

This year, Schneider Electric inaugurated a new microgrid at our Molins de Rei factory in Barcelona as part of a partnership with Iberdrola. The installation includes 990 solar panels, five EV charging stations, and 216 kWh of battery storage, all managed through Schneider Electric’s EcoStruxure Microgrid Operation and Advisor software.

Since 2019, the plant has achieved 24% energy savings and reached its decarbonisation targets, earning its status as a Zero CO₂ Factory. It's a powerful example of how prosumer models can drive both sustainability and resilience.

Change catalyst

Technology alone can’t stabilise Europe’s energy systems. We need coherent, forward-looking policy to unlock investment and accelerate adoption.

The EU’s Clean Industrial Deal, backed by €2 billion ($2.3 billion) in EIB guarantees, marks a promising step towards grid modernisation and electrification. However, its non-binding nature means real progress hinges on national-level commitment. 

The severity of this summer's heatwaves makes one thing clear: we can’t afford to wait. The EU must take urgent steps to support investments in digital infrastructure, empower prosumer participation, and make demand-flexibility a core component of its future energy strategy. This is what I hope to see in the European Grids Package, expected in the coming months.

Without policy alignment, smart technology will stay on the sidelines.

Europe’s energy future is being forged in the heat of today’s crises. Modernising the grid is no longer a technical upgrade, it’s a necessity for a continent striving for energy security, competitiveness, and climate leadership.

The challenges are clear: surging peak loads, volatile prices, and the growing threat of outages in an era of extreme weather. But the solutions are within reach. By scaling digital infrastructure and enacting bold, forward-thinking policy, Europe can build an energy system that is both resilient and sustainable.

The investments required are significant, but the price of delay is far higher. Europe’s energy future demands urgency – and the rewards will benefit generations to come.

ABOUT THE AUTHOR: Gwenaelle Avice Huet is Executive Vice-President of Industrial Automation at Schneider Electric.