Itron and Schneider Electric Partner to Revolutionize Grid Management

In an era marked by rapid decarbonization and urban electrification, the electric power distribution systems are undergoing unprecedented changes. The proliferation of distributed energy resources (DERs) and flexible loads, such as microgrids, rooftop and utility-scale photovoltaics, battery energy storage systems, electric vehicles, and grid-interfacing efficient buildings, is pushing the control and operational requirements of the grid to the edge. These grid-edge resources hold the potential to enhance the grid’s operational flexibility to support decarbonization and electrification goals and improve grid resilience in the aftermath of extreme weather events. However, massive penetrations of grid-edge resources with heterogeneous technologies, diverse user interaction modalities, and multi-ownership environments are significantly increasing the scale and complexity of grid operations, particularly at the edge, rendering traditional centralized architectures for grid communication and control ineffective.



To address these challenges, itron, Schneider Electric, and microsoft have expanded their collaboration to deliver a comprehensive Grid Edge Intelligence solution. This partnership integrates Itron's distributed intelligence technology with Schneider's Digital Grid solutions and Microsoft's AI platform, aiming to improve grid reliability through high-bandwidth, real-time data integration. The solution enables utilities to enhance grid capacity by up to 20% while maintaining asset loading limits, addressing infrastructure constraints during a period where transformer lead times extend to 1-2 years.

The collaboration leverages Itron's core distributed intelligence capabilities to deliver real-time insights from behind service transformers, potentially enabling utilities to enhance grid capacity by up to 20% without requiring new physical infrastructure. This non-wires solution could deliver substantial value during a period of constrained infrastructure availability. The four specific use cases—transformer-to-meter mapping, state estimation improvements, enhanced Volt-VAR optimization, and DER grouping—directly address efficiency, reliability, and planning challenges utilities currently face. By positioning their technology to help utilities optimize existing assets and better integrate distributed energy resources, Itron demonstrates alignment with broader industry trends toward grid modernization.

While commercial availability isn't expected until year-end 2025, which limits near-term revenue impact, this collaboration potentially strengthens Itron's competitive positioning in the grid intelligence market. The partnership with technology leaders Microsoft and Schneider Electric likely enhances Itron's market credibility and expands their total addressable market through complementary capabilities and customer relationships.

The collaboration between Itron, Schneider Electric, and Microsoft addresses the current challenges faced by utilities in managing grid complexity and infrastructure constraints through several key strategies:

1. Real-Time Data Integration and AI Analytics: The partnership integrates Itron's distributed intelligence technology with Schneider's Digital Grid solutions and Microsoft's AI platform. This integration enables high-bandwidth, real-time data integration, which is crucial for improving grid reliability. As stated, "This collaboration takes advantage of Itron’s distributed intelligence technology, accelerating the path to bring grid edge intelligence to the utility control center. This will improve grid reliability by establishing high-bandwidth, real-time and scalable data integration between the companies’ systems and enable the use of AI and big data analytics." This real-time data flow allows utilities to make informed decisions quickly, addressing the challenges posed by the increasing complexity of the grid.

2. Non-Wires Solutions: The collaboration brings to market a non-wires solution that addresses utility challenges during a critical period of infrastructure constraints. With transformer lead times extending to 1-2 years, this solution is particularly valuable. As mentioned, "With this non-wires solution, utilities can optimize the grid edge and central control system, enhancing grid capacity of utilities’ existing infrastructure by as much as 20%, while maintaining grid asset loading within current design limits." This non-wires approach helps utilities enhance grid capacity without the need for new physical infrastructure, which is a significant advantage given the extended lead times for essential components.

3. Specific Use Cases: The solution includes specific use cases such as transformer-to-meter mapping, state estimation improvements, enhanced Volt-VAR optimization, and local DER group management. These use cases directly address efficiency, reliability, and planning challenges. For example, "The four specific use cases (transformer-to-meter mapping, state estimation improvements, enhanced volt-VAR optimization, and DER grouping) directly address efficiency, reliability, and planning challenges utilities currently face." By positioning their technology to help utilities optimize existing assets and better integrate distributed energy resources, Itron demonstrates alignment with broader industry trends toward grid modernization.

4. Enhanced Grid Capacity: The collaboration aims to enhance grid capacity by up to 20% while maintaining asset loading limits. This is achieved through the integration of Itron’s Grid Edge Intelligence solutions, Schneider Electric’s Digital Grid solutions, and Microsoft data and AI solutions. As noted, "The collaboration will integrate Itron’s Grid Edge Intelligence solutions, Schneider Electric’s Digital Grid solutions, and Microsoft data and AI solutions to facilitate seamless data flow and provide visibility into distribution grid bottlenecks." This integration allows utilities to modernize their models with near real-time measurements and better understand distribution grid bottlenecks, thereby improving overall grid efficiency and reliability.

5. Addressing DER Integration: The solution also supports the integration of distributed energy resources (DERs), which are becoming increasingly prevalent. As mentioned, "The successful completion of the CITADELS project serves as a proof of concept that the microgrid controllers can be coordinated using consensus algorithms on a secure pub/sub network (using the Open Field Message Bus approach), and a layered control architecture can be used to increase the grid’s operational flexibility by facilitating the control at the system “edge.”" This demonstrates the collaboration's ability to manage the increasing complexity of the grid due to the proliferation of DERs.

In summary, the collaboration between Itron, Schneider Electric, and Microsoft addresses the challenges of grid complexity and infrastructure constraints by leveraging real-time data integration, AI analytics, non-wires solutions, specific use cases, enhanced grid capacity, and DER integration. These strategies collectively enable utilities to manage the grid more effectively, despite the increasing complexity and extended lead times for essential components.

The partnership between Itron, Schneider Electric, and Microsoft has enabled several specific technological advancements and use cases that significantly improve grid reliability and capacity. These advancements include:

1. Transformer-to-Meter Mapping: This feature allows for precise mapping of transformers to individual meters, providing utilities with detailed insights into the performance and loading of their distribution infrastructure. As stated, "The solution enables utilities to modernize their models with near real-time measurements and better understand distribution grid bottlenecks." This real-time data integration helps utilities to optimize their grid operations and enhance reliability by identifying and addressing potential issues before they cause outages.

2. State Estimation Improvements: The collaboration leverages high-bandwidth, real-time data integration to improve state estimation, which is crucial for accurate grid monitoring and control. By enhancing state estimation, utilities can better predict and manage grid conditions, leading to improved reliability and efficiency. The partnership aims to "improve grid reliability by establishing high-bandwidth, real-time and scalable data integration between the companies’ systems and enable the use of AI and big data analytics."

3. Enhanced Volt-VAR Optimization: This use case involves optimizing voltage and reactive power (Volt-VAR) to maintain stable and efficient grid operations. The partnership enables utilities to "enhance grid capacity by up to 20% while maintaining asset loading limits," which is particularly valuable during periods of infrastructure constraints. This optimization helps in reducing power losses and improving the overall efficiency of the grid.

4. Local DER Group Management: The solution includes the management of distributed energy resources (DERs) in local groups, allowing utilities to better integrate and control these resources. This is essential for grid modernization as it enables utilities to "optimize the grid edge and central control system, enhancing grid capacity of utilities’ existing infrastructure by as much as 20%, while maintaining grid asset loading within current design limits." By managing DERs effectively, utilities can enhance grid reliability and capacity without the need for new physical infrastructure.

These innovations contribute to improving grid reliability and capacity by providing utilities with real-time insights and control over their distribution systems. The partnership's non-wires solution addresses critical infrastructure constraints, such as transformer lead times extending to 1-2 years, by leveraging advanced technologies and data analytics. As a result, utilities can enhance their grid capacity by up to 20% without requiring new physical infrastructure, thereby delivering substantial value during a period of constrained infrastructure availability.

In conclusion, the collaboration between Itron, Schneider Electric, and Microsoft represents a strategic advancement in grid edge technology that addresses critical market needs. By leveraging real-time data integration, AI analytics, non-wires solutions, specific use cases, enhanced grid capacity, and DER integration, this partnership enables utilities to manage the grid more effectively, despite the increasing complexity and extended lead times for essential components. This collaboration not only strengthens Itron's competitive positioning in the grid intelligence market but also enhances its market credibility and expands its total addressable market through complementary capabilities and customer relationships.

Ask Aime: How does collaboration between Itron, Schneider Electric, and Microsoft address the challenges of grid complexity and infrastructure constraints?