From AC to DC: The next phase of electrification will reshape power distribution
Schneider Electric
By Tim Pratt, Vice President Power Products, Schneider Electric
Australia’s energy transition is often discussed at grid scale: new renewables, new transmission and more storage. All of that matters. But the next phase of electrification will also be shaped by what happens inside the buildings, depots, campuses and facilities that use electricity every day.
As more of our economy electrifies, power distribution becomes a bigger part of the story. Electric vehicles, batteries, solar systems, data centres, smart buildings and digital devices all change what electrical infrastructure needs to do. They also change the way we should think about energy inside a site.
For decades, alternating current, or AC, has been the backbone of electricity systems. It remains essential, particularly for moving power over long distances. That will not change. But many of the technologies now driving demand use direct current, or DC, at the point of use.
A phone, laptop or television takes AC from the wall and converts it to DC before it can use the power. An electric vehicle battery stores DC. A fast charger delivers DC directly to the vehicle. Solar panels and batteries also operate in DC.
Each time power is converted, some energy is lost. In a single device, that loss may not seem significant. Across a large facility, a bus depot, a hospital fleet, a data centre or a multi-site operation, it becomes part of the efficiency equation.
That is why the shift from AC to DC should be understood as a practical infrastructure trend, not a distant technical debate. It is not about replacing AC everywhere. It is about designing the right architecture for the right application.
Electric bus depots are a useful example. A depot is not simply a place where chargers are installed. It is a working energy system. Buses need to return on schedule, charge within defined windows and be ready for service again. If the charging system fails, it is not a private inconvenience. It affects public transport.
In many depot environments, the traditional model is to distribute AC power around the site and convert it to DC at each charging point. As fleets grow, there is a strong case for looking at the architecture differently. Power can be converted closer to where it enters the facility, then distributed as DC to the chargers. That can reduce repeated conversion losses and create a more efficient system across the depot.
The same principle will become relevant in other settings. Data centres are already accelerating this conversation because high-density computing requires large amounts of DC power. The investment going into AI infrastructure is helping advance technologies that can later support other sectors, from EV charging and commercial buildings to homes with solar, batteries and connected appliances.
This is how energy technology often develops. A demanding use case pushes the technology forward. Over time, the learnings move into more everyday environments.
For Australia, the opportunity is to prepare early. Electrification will not be accelerated by appliances alone. A charger, a battery or an electric vehicle is only the visible part of the system. Behind it sit switchboards, cabling, transformers, protection systems, software, load management and energy data. Those elements determine whether electrification is reliable, efficient and scalable.
Load management will be especially important. A building does not have the same available capacity at every hour of the day. Solar output changes. Air conditioning demand rises and falls. Lifts, equipment and other systems draw power at different times. Intelligent load management helps decide when and how much power can be directed to vehicles, batteries or other loads without overloading the site.
That capability matters in critical environments. A hospital fleet vehicle may need priority charging. A bus may need to return to service quickly. A commercial fleet may need to charge when tariffs are lower. These decisions cannot be managed well through static infrastructure alone. They need digital visibility and control.
This is where Schneider Electric’s role as an energy technology partner becomes important. The future of electrification will require electrification, automation and digitalisation to work together. It will require hardware that can handle changing loads, software that can optimise performance and partners that understand how energy moves from the grid connection through to the final application.
There is also work to do beyond technology. Standards, product certification, switchboard design, installer capability and building design will need to evolve as DC applications expand. That is normal in any major infrastructure transition. The important point is to begin that work before demand is overwhelming existing systems.
Australia has a strong foundation to build on. We have high rooftop solar uptake, growing interest in batteries, expanding EV adoption and rising investment in digital infrastructure. The next step is to connect these pieces more intelligently.
The energy transition will be easier to scale when every site is designed with the future in mind. That means thinking beyond the immediate appliance and considering the full electrical architecture. It means making room for new loads, new sources of energy and new ways of managing power.
AC built the electricity system we rely on today. DC will play a growing role in the systems now being added to it. The task ahead is to bring those worlds together carefully, practically and at scale.
That is how electrification moves from ambition to everyday operation.
ENDS
Tim Pratt is the Pacific Vice President, Power Products, Schneider Electric.
Press contact: [email protected]
About Schneider Electric
Schneider Electric is a global energy technology leader, driving efficiency and sustainability by electrifying, automating, and digitalizing industries, businesses, and homes. Its technologies enable buildings, data centers, factories, infrastructure, and grids to operate as open, interconnected ecosystems, enhancing performance, resilience, and sustainability. The portfolio includes intelligent devices, software-defined architectures, AI-powered systems, digital services, and expert advisory. With 160,000 employees and 1 million partners in over 100 countries, Schneider Electric is consistently ranked among the world’s most sustainable companies.
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