As the global energy transition accelerates, electricity grids are facing a level of growth and complexity without historical precedent. According to Siemens, the survival of power systems in this new context will depend less on physical expansion alone and more on digitalisation, automation and intelligent grid management.
Christian Candela, CEO of Siemens Chile, said energy outlooks toward 2035 indicate that global renewable energy capacity could triple, while transmission and distribution infrastructure would need to double to keep pace with electrification, storage deployment and new demand patterns.
However, Candela warned that relying solely on new grid infrastructure is no longer viable. The construction of major transmission lines can take up to 10–12 years, creating a structural mismatch between the speed of the energy transition and the pace of grid expansion.
“We cannot wait for large infrastructure projects to be completed,” Candela said during the Future Energy Summit (FES) Chile, a regional energy conference attended by more than 400 industry leaders. “In the short and medium term, the only way to keep the system operating safely and reliably is through digitalisation.”
This shift marks a fundamental change in how power systems are planned and operated. Rather than focusing exclusively on new assets, utilities and system operators are now required to maximise existing infrastructure, integrating advanced technologies that enhance efficiency, resilience and real-time operational intelligence.
“The transition demands everything at once: more generation, solar panels, batteries, turbines, transmission networks and distribution systems,” Candela explained. “But it also requires greater transparency around investments, smarter consumption, stronger energy efficiency and robust cybersecurity.”
In response, Siemens is deploying an integrated portfolio that combines electrification, automation and digital solutions, ranging from digital substations to AI-based energy management platforms designed to support grid stability under increasingly variable conditions.
Energy storage plays a central role in this transformation. Siemens projects that installed storage capacity could exceed 40 GWh by 2027, representing a tenfold increase from current levels. To support this scale-up, the company is involved in approximately 20% of storage projects already in operation and 30% of those under construction, supplying technologies such as SCADA (Supervisory Control and Data Acquisition), EMS (Energy Management Systems), BMS (Battery Management Systems), medium- and low-voltage equipment, and AI integration through its Siemens Xcelerator platform.
Microgrids, self-consumption and efficiency: redefining the grid
For Siemens, digitalisation is not only about managing supply. The energy transition is also reshaping demand, as large consumers increasingly seek energy autonomy, self-consumption and cost optimization.
“We will see a growing number of smaller grids connecting to the system,” Candela said. “These microgrids will require energy storage and advanced digital management systems. Many customers are already planning to manage their own self-consumption.”
This decentralised model is accelerating the adoption of Distributed Energy Systems (DES), which integrate renewable generation, storage and operational control into scalable and resilient configurations. Beyond energy arbitrage, these systems can also provide ancillary services, supporting grid frequency, voltage control and system flexibility.
At the same time, Distributed Management Systems (DMS) are becoming critical tools for utilities. According to Siemens, the goal is not only to optimize supply, but also to actively manage demand through predictive maintenance, real-time analytics and proactive grid operation, enabling the integration of large volumes of renewable energy and storage.
In an increasingly digital and interconnected electricity system, cybersecurity emerges as a strategic priority. Siemens advocates for an end-to-end approach that combines process automation, protection of critical infrastructure and operational resilience, positioning digital grids as a cornerstone of a secure and sustainable energy transition.
