Distributech 2025: More intelligent energy grid looms as utilities adopt AI

The ongoing shift toward a digitally transformed and increasingly intelligent energy grid was among the overriding themes at the recent utility-focused Distributech 2025 event. Growing technology adoption is led by use of industrial internet of things, AI, and machine learning to tackle long-standing challenges in grid reliability, security and efficiency. S&P Global Market Intelligence 451 Research met with key vendors leading this charge at the show, including Honeywell International Inc., GE Vernova Inc., Hitachi Energy AG, Eaton Corporation PLC and others. This report covers those conversations, as well as news and developments from the event.

Distributech 2025 underscored a decisive shift toward a highly digitized and intelligent energy future. The convergence of AI, advanced analytics and IoT connectivity signals a move from reactive to proactive grid management, crucial for handling the increasing complexity of distributed energy resources (DERs) and evolving — and growing — energy demands. Utilities are prioritizing the adoption of AI-driven solutions for enhanced reliability, predictive maintenance and optimized operations. C-level comfort with an emphasis on AI-driven innovation is surprisingly high, especially for a traditionally conservative industry, according to vendors we spoke with. To address the changing utility and energy landscape, industrial software vendors must focus on developing open, interoperable platforms that facilitate seamless data integration from grid edge to cloud, offering AI-powered insight and automation tools to empower utilities to build a more resilient and efficient grid. Partnerships, especially with cloud hyperscalers, must continue to evolve as utility projects scale and software providers need to support the primary cloud-native service stacks.

Key trends from Distributech 2025

Key trends centered on leveraging AI and machine learning to tackle long-standing challenges in grid reliability, security and efficiency. The growing penetration of DERs — including renewables, microgrids and advanced battery storage systems — requires new approaches and capabilities for industrial software in the sector, delivering enhanced visibility and control at the increasingly two-way grid edge. Strengthening grid resilience against threats like wildfires and cyberattacks emerged as another critical focus, driving innovation in monitoring, detection and automation technologies. Finally, the need for advanced data analytics and seamless integration across utility systems is propelling collaborations and the development of unified platforms among vendor partners old and new.

Key takeaways

Distributech 2025 featured several significant technology implementations and partnerships addressing current grid modernization challenges:

EPRI and Microsoft launch Open Power AI Consortium

Electric Power Research Institute and Microsoft Corp. established the Open Power AI Consortium, bringing together 30 energy companies to develop standardized AI models for power sector applications. The consortium will create a testing environment for AI application validation with multiple stakeholders.

Key takeaway: This industrywide initiative establishes standardized frameworks for AI implementation in power systems, enabling faster adoption of proven technologies. It also recognizes the reality that every company — end-user utilities and the industrial software providers that serve them — will have proprietary data and AI models. Industry baseline models will complement those, speeding innovation and enabling base levels of AI interoperability across the energy value chain.

Honeywell implements 5G smart meter technology

Honeywell partnered with Verizon Business to integrate 5G connectivity into smart meters, enabling data transmission rates of up to 10 Gbps. This advancement allows utilities to access consumption data in near real time while improving demand forecasting accuracy.

Key takeaway: Honeywell's 5G integration in smart meters provides the high-speed, reliable communications necessary for real-time grid management and precise demand forecasting. Fallback or alternative LTE-based IoT connectivity at the meter continues to be a necessity in places 5G does not reach today.

Hitachi Energy and AWS develop cloud-based grid applications

Hitachi Energy initiated a multiyear technical partnership with Amazon Web Services Inc. to accelerate cloud-based utility applications. Their first implementation, Hitachi Vegetation Manager, uses AI analysis to predict and prevent vegetation-related outages, reducing associated downtime.

Key takeaway: The AWS-Hitachi partnership demonstrates how cloud infrastructure and AI analytics directly improve grid reliability metrics and reduce vegetation management costs.

Eaton develops AI-based wildfire prevention system

Eaton, in collaboration with the US Army Corps of Engineers and National Renewable Energy Laboratory, introduced the HiZ Protect system. This AI-powered technology detects high-impedance powerline faults with 95% accuracy within 0.5 seconds of occurrence, Eaton claims. Field tests demonstrate a significant reduction in potential wildfire ignition scenarios.

Key takeaway: Eaton's system proves that AI applications can significantly reduce wildfire risks through rapid fault detection and response.

Schneider Electric introduces One Digital Grid Platform

Schneider Electric SE launched its One Digital Grid Platform, integrating previously independent software systems through AI-enabled analytics. The system enables utilities to accelerate grid modernization while reducing operational costs. Real-time monitoring and predictive analytics support grid planning, operations and customer engagement.

Key takeaway: This integrated platform reduces system complexity while providing measurable improvements in grid performance and cost reduction. It also reflects the trend of industrial software vendors moving away from leading with their IoT platform brands — but still maintaining them under the hood, in this case, Schneider's EcoStruxure — while emphasizing the continued use and modernization of industry-specific applications.

Siemens advances grid transformation technologies

Siemens AG demonstrated its Xcelerator digital platform, featuring integrated tools aimed at reducing grid digitalization implementation time. The company's Electrification X and Gridscale X software provide specific capabilities for grid planning, operation and maintenance, including digital substation technologies that decrease installation footprint while adding resiliency.

Key takeaway: Siemens' integrated digital tools and reduced implementation timelines demonstrate practical advances in grid modernization technology. Its Xcelerator platform continues to receive regular updates, adding significant AI and related capabilities in recent months.

Itron and Schneider Electric expand Microsoft integration

Itron Inc. and Schneider Electric enhanced their Microsoft collaboration to implement comprehensive Grid Edge Intelligence capabilities. The integration combines distributed sensor networks with Microsoft's Azure platform, enabling real-time data processing. Initial implementations show a significant improvement in DER response times, the companies say.

Key takeaway: This three-way technical integration proves the viability of real-time grid edge analytics at scale, with quantifiable improvements in DER management.

Percepto launches autonomous inspection system

Percepto Robotics Ltd. introduced an AI-powered drone inspection system that increases inspection coverage while reducing inspection costs. The system performs continuous monitoring using autonomous drones and AI analytics, enabling utilities to identify potential failures up to two weeks earlier than traditional methods.

Key takeaway: Percepto's autonomous system demonstrates how robotics and AI can transform infrastructure inspection from periodic maintenance to continuous monitoring, improving both efficiency and reliability..

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This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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