Frederic Godemel is the Executive Vice-President for Energy Management at Schneider Electric.
This year has offered a stark reminder of how vulnerable modern societies are to losing power supply. From Europe to the Caribbean to South Asia, large-scale outages have swept through countries. Whether triggered by severe weather, worn-out equipment or sudden technical failures, each episode exposes the same underlying truth that the systems we depend on to keep power flowing are being stretched thin.
The impact on businesses is clear. The Allianz Risk Barometer for 2025 ranked business interruption, typically caused by natural disasters, cyberattacks or outages, as the second biggest risk for businesses. Organizations are reacting accordingly. A global study of 1500 global business executives found that 93% of them are considering investing in onsite renewables to aid their operations, which can provide enhanced energy security, lower energy costs and reduce emissions.
From unpredictable costs to sudden supply shocks and shifting regulations, energy uncertainty is reshaping how organizations operate. To compete and grow in this volatile landscape, businesses must rethink their energy strategies, moving beyond legacy models to embrace smarter, more flexible systems that secure resilience, unlock long-term value and offer greater control.
Rethinking Resilience: A Business Imperative
Electrification and digitalization, what we’ve termed at Schneider Electric as Electricity 4.0, are transforming how energy is produced and consumed, but many organizations aren’t taking advantage. Instead, they are still reliant on outdated, centralized systems that struggle to meet today’s demands and increase their business operations’ exposure to outside risks.
Since Russia invaded Ukraine, residential electricity prices have jumped to an average of nearly 30% in Europe, with a domino effect around the world. The impact is clear: Verdantix found that over half (56%) of global leaders now rank energy price volatility as a top concern, and are prioritizing investments to mitigate these risks.
To truly build resilience and even gain a competitive advantage, businesses must move beyond traditional backup solutions such as generators. Success now depends on adopting intelligent, flexible, digital energy systems—networks that sense and respond to real-time conditions, analyze data and automatically adjust operations to prevent outages. This means investing in decentralized solutions that can operate independently during disruptions, and advanced storage solutions that deliver power precisely when and where it’s needed.
Enter microgrids. These self-contained energy networks that can operate independently from the main grid are emerging as a critical solution. For businesses, they deliver stronger energy security, cost stability and a competitive edge in a world where downtime should no longer be a risk.
Smarter Energy Use: Turning Flexibility Into Resilience
Resilience is about using power more effectively—optimizing demand, relying on accurate weather forecasts and predictive insights and ensuring backup supplies are in place. Smart energy storage solutions can not only store excess solar or wind energy produced, but also store energy bought when rates are cheapest. When digital software is layered on top, businesses can take advantage of unprecedented demand-side flexibility, allowing organizations to shift energy use in response to real-time conditions, whether to manage surges in demand during heatwaves, dips in renewable generation caused by weather or sudden swings in electricity prices.
With AI-enabled technologies, such as smart building management systems and smart appliances and microgrids, consumption can automatically be optimized. Take HVAC, for example. In a warm climate, an office building might pre-cool meeting rooms in the morning when solar energy is abundant, while in cooler regions, the system could pre-heat spaces instead. In both cases, the building can scale back energy use during peak grid hours, maintaining comfort through thermal storage, building inertia and occupancy-aware controls. The AI-enabled system continuously adjusts airflow, temperature setpoints and lighting, ensuring energy is drawn primarily from onsite solar rather than the grid, reducing costs and lowering peak demand. The payoff is clear: Emissions drop, the grid becomes more stable and operating costs decline. Companies avoid expensive peak-time charges, gain greater control over energy risk and build resilience into their operations.
These same motivations—cutting costs, reducing dependence on the grid and strengthening resilience—are also shaping energy decisions at a national and regional level. In Europe, concerns around energy sovereignty and economic competitiveness are driving policies that encourage the adoption of cleaner technologies amongst businesses, from onsite solar and wind to energy storage and demand-side management systems. These initiatives not only reduce reliance on imported energy but also offer companies a way to manage costs, generate additional revenues such as selling excess onsite solar back to the grid and align with evolving reporting requirements such as the Corporate Sustainability Reporting Directive (CSRD).
In hurricane-prone U.S. states or Australia’s bushfire regions, microgrids and other localized solutions provide businesses with a critical safeguard where traditional infrastructure may fail.
The technology exists, but adoption remains uneven. The real challenge for business leaders is identifying the right solutions for their geographies, aligning them with broader business goals and scaling at speed.
Leading The Charge
The future is electric and digital, and business leaders need to be ready. True resilience isn’t just about building more capacity; it’s about using what you have more intelligently and strengthening systems to withstand stress while adapting to unexpected disruptions. Smart technologies, from AI-enabled energy management to microgrids, combined with strategic collaboration, ensure companies can continue to operate and succeed under pressure.
For businesses to thrive in this evolving landscape, it’s critical to align strategy with geographical complexities, invest in flexible, digital energy solutions and work alongside policymakers, suppliers and partners. Companies that act decisively today won’t just protect their operations; they will gain a competitive edge and shape a more resilient, sustainable energy future.
Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?