Smart Grid and Energy Management Systems – Latest Developments (June–July 2025)

The energy sector saw significant progress in smart grid technologies and energy management systems during June and early July 2025. This report highlights the period’s technical breakthroughs, major projects and investments, policy shifts, and insights from industry experts. Key themes include advances in grid digitization, AI and IoT integration, large-scale investments in grid infrastructure, evolving regulatory frameworks, demand-side innovations (like smart tariffs and home energy management), and emerging market trends. The goal is to provide a comprehensive overview of how smart grids and energy management are evolving in mid-2025, drawing on reputable news, industry reports, and expert analysis.

Technical Advancements in Smart Grids (June–July 2025)

• AI, IoT and Proactive Grid Management: A major trend is the convergence of AI, advanced analytics, and IoT connectivity to enable more intelligent, proactive grid control. At the Distributech 2025 conference, industry leaders emphasized moving from reactive to predictive operations to handle the growing complexity of distributed energy resources (DERs) spglobal.com. Utilities are increasingly adopting AI-driven solutions for reliability and efficiency. For instance, Honeywell partnered with Verizon to integrate 5G connectivity into smart meters, achieving data speeds up to 10 Gbps. This allows near real-time consumption data and vastly improved demand forecasting spglobal.com. Such high-speed, reliable communication is crucial for real-time grid management and granular optimization of power flows.
• Grid Reliability & Automation Technologies: New technologies are addressing long-standing grid reliability challenges. Eaton unveiled an AI-based wildfire prevention system called HiZ Protect that detects high-impedance power line faults with 95% accuracy in under 0.5 seconds spglobal.com. Early field tests indicate this rapid fault detection can significantly reduce wildfire ignition risk from grid equipment. Likewise, Hitachi Energy and AWS launched a cloud-based AI application (Hitachi Vegetation Manager) to predict and prevent tree-related outages, demonstrating how cloud analytics improve grid resilience spglobal.com.
• Unified Digital Grid Platforms: Grid technology vendors introduced integrated software platforms to break down data silos and streamline operations. Schneider Electric rolled out its One Digital Grid platform, which uses AI-enabled analytics to unify previously separate grid management systems spglobal.com. This integration provides utilities with real-time monitoring, predictive analytics, and unified control spanning grid planning, operations, and even customer engagement. The result is faster grid modernization and reduced operating costs through improved efficiency spglobal.com. Similarly, Siemens demonstrated updates to its Xcelerator digital platform, featuring tools that cut implementation time for grid digitalization. Siemens’ new Electrification X and Gridscale X solutions focus on digital substation technology and streamlined grid planning, reducing infrastructure footprint while improving resiliency spglobal.com. These developments reflect a broader industry push for open, interoperable platforms that can ingest data from edge devices to cloud in order to provide AI-powered insights across the grid spglobal.com.
• Standardized AI and Data Initiatives: There is a growing recognition that industry-wide collaboration is needed to realize AI’s full potential in power systems. In May, the Electric Power Research Institute (EPRI) and Microsoft launched the Open Power AI Consortium, bringing together 30 utilities and tech partners to develop standardized AI models for grid applications spglobal.com. This consortium will create shared testing environments and “baseline” AI models, complementing proprietary utility algorithms and ensuring a level of interoperability in AI solutions across the sector spglobal.com. The goal is to speed up AI adoption by establishing proven frameworks and addressing common data challenges. In parallel, utilities are tackling data accessibility for AI – as one expert put it, “Data is AI’s oil, gas, wind and solar all wrapped into one,” underscoring efforts like EPRI’s Open Power data repository to curate datasets for machine learning utilitydive.com utilitydive.com. Overall, these technical advancements – from ultra-fast smart meter communications to AI fault detection and collaborative AI frameworks – are transforming the grid into a more digital, intelligent network equipped to handle the demands of clean energy and decentralization.

Major Investments and Projects in Smart Grids

• Grid-Scale Battery Deployment in Asia: New projects are marrying distributed renewables with storage to enhance grid flexibility. Notably, Blue Whale Energy, a Southeast Asia-based virtual power plant developer, partnered with UNIGRID, Inc. to deploy rooftop battery energy storage systems (BESS) across urban areas techedt.com. The collaboration focuses on sodium-ion battery technology – a safer, space-saving alternative to lithium-ion – to store solar power in cities with limited space techedt.com. Blue Whale plans an initial rollout of 8 MWh of sodium-ion solar-plus-storage systems by the end of 2025, scaling up thereafter smart-energy.com. By pairing solar panels with BESS on rooftops, this project aims to solve a key challenge in dense cities: how to store midday solar energy and deliver it during peak demand hours techedt.com. The investment not only advances battery tech (by commercializing sodium-ion systems) but also supports the creation of a regional virtual power plant that can smooth solar intermittency and provide grid services in Southeast Asia.
• Massive Utility Investment Plans: Established utilities are committing unprecedented capital to grid modernization and clean energy. Spain’s Iberdrola, for example, outlined a record €150 billion investment plan for 2024–2030, with €12 billion earmarked in 2025 alone smart-energy.com. This plan – one of the largest ever in the electric utility sector – will fund smart grid upgrades, renewable energy deployment, and customer electrification initiatives. Iberdrola’s strategy underscores how major power companies are pouring resources into grid expansion and digitalisation to meet decarbonization goals. In the United States, the Department of Energy’s Grid Deployment Office has similarly been rolling out funding from the Bipartisan Infrastructure Law. By June 2025, DOE’s Grid Resilience and Innovation Partnership (GRIP) program had announced $7.6 billion for 105 projects across all 50 states to harden and expand the grid energy.gov. Many of these federally co-funded projects involve advanced transmission technologies, smart transformers, and enhanced distribution automation to increase capacity for renewables and improve resilience against extreme weather energy.gov.
• Smart Meter and AMI Rollouts: Investments in advanced metering infrastructure (AMI) also continue worldwide as a foundation for smart grids. For instance, Australia set in motion reforms to accelerate smart meter deployment by 2025, mandating faster installation so that all legacy meters are replaced by the end of the decade energy.gov.au energy.gov.au. The Australian Energy Market Commission’s plan includes removing upfront costs for consumers and ensuring new meters provide better power quality data to networks energy.gov.au energy.gov.au. This kind of initiative, mirrored in other countries, highlights a broader investment trend: upgrading millions of endpoints (meters) with two-way communication to enable dynamic pricing, quicker outage detection, and integration of customer solar/storage. In emerging markets, projects like Nigeria’s Mass Metering Program (where private utility Aba Power is installing 20,000 smart meters per month) illustrate efforts to reduce losses and improve reliability by investing in metering technology globalupfront.com. Such meter rollouts are often backed by government or World Bank funding and are crucial for bringing consumer-level visibility and control into the energy management ecosystem.
• Cross-Border and Transmission Projects: Smart grid investments aren’t limited to local systems – they also include large-scale interconnectors and “smart” transmission lines. In Southeast Asia, Singapore established a new state-backed company (Singapore Energy Interconnections, or SGEI) to develop regional power grid links orrick.com orrick.com. This move, announced in June 2025, is tied to Singapore’s goal of importing 6 GW of low-carbon electricity by 2035 and building an ASEAN-wide grid. SGEI will invest in cross-border infrastructure and smart controls to transmit renewable power across countries, supported by governmental guarantees given the high capital costs orrick.com. Likewise, Indonesia’s latest 10-year electricity plan (RUPTL 2025–2034) for the first time permits private investment in transmission and smart grid projects alongside the state utility PLN orrick.com. Private partners can now invest in “super grid” links between regions, IT-based smart grid systems for active power monitoring, and real-time control systems to better integrate renewables orrick.com. These policy-enabled projects will channel significant funds into modernizing grid infrastructure at both national and cross-border levels. Overall, the June–July period showed that governments and industry are directing billions toward grid upgrades, smart systems, and storage – laying the groundwork for a more resilient and flexible energy network.

Policy and Regulatory Changes Impacting Smart Grids

• EU Guidance on Grids and Renewables (July 2025): The European Commission took steps to accelerate the clean energy transition by issuing new guidance to EU member states on renewable integration and grid expansion energy.ec.europa.eu. On July 2, 2025, the Commission recommended that countries streamline permitting and “fast-track” grid and storage infrastructure deployment to keep pace with surging renewable generation energy.ec.europa.eu. The guidance suggests designating certain areas for priority grid development, where projects could be exempt from some environmental assessments to speed up construction energy.ec.europa.eu. It also calls for future-proofing electricity network tariffs – urging regulators to implement tariff designs that incentivize flexibility and off-peak power use (so consumers are rewarded for using electricity when it’s plentiful and cheap) energy.ec.europa.eu. Additionally, the EU is pushing nations to adopt regulatory frameworks for innovative renewables like floating offshore wind, agrivoltaics, ocean energy, and vehicle-to-grid PV, including targeted financial support to bridge the cost gap for these new technologies energy.ec.europa.eu. This EU policy update, part of the bloc’s Action Plan for Affordable Energy, underlines a regulatory shift toward enabling smarter grids (via better tariffs) and integrating next-generation clean energy sources across Europe.
• U.S. Executive Actions for Grid Capacity: In the United States, federal policy turned toward grid reliability and capacity in light of AI and data center growth. In late June 2025, it was reported that the Trump Administration is preparing a package of executive orders to boost energy infrastructure in order to meet massive electricity demand from artificial intelligence expansion reuters.com. The measures under consideration include expediting grid interconnections for new power generation projects (by streamlining the cumbersome interconnection study process) and offering federal lands for building energy-intensive data centers reuters.com. The White House is also set to release an “AI Action Plan” on July 23, 2025, focused on ensuring the power grid can support burgeoning AI compute needs reuters.com. These actions come as U.S. power demand is projected to rise fivefold faster than expected, driven by AI data centers reuters.com. To avoid bottlenecks, the administration aims to cut red tape: for example, identifying shovel-ready generation projects and moving them up in the queue for connection reuters.com, and creating nationwide permits (under the Clean Water Act) to simplify data center construction approvals reuters.com. While still in planning, these federal moves signal a policy trend to bolster grid capacity and reliability (including traditional generation and transmission) in response to new high-demand industries.
• UK Grid Connection Reforms: Regulators in the UK approved major grid interconnection reforms in spring 2025 that continued to make news in June. In April, Ofgem (the UK energy regulator) agreed to remove so-called “zombie projects” from the transmission connection queue and to streamline the process for new renewable projects pv-tech.org. Many gigawatts of proposed renewables had been clogging the queue for years without progress. By culling dormant projects and prioritizing ready-to-build ones, the reform is expected to unlock a huge amount of clean capacity – Ofgem anticipates increasing the next round of grid connection offers from 39 GW to 65 GW of new solar and wind projects pv-tech.org. The grid queue reforms, developed with the National Grid ESO, address a tenfold increase in connection wait times over the last five years and will significantly cut the typical 10–15 year wait for renewable projects to get online pv-tech.org pv-tech.org. Industry groups welcomed the changes, though they urge careful implementation to ensure solar and battery projects aren’t arbitrarily capped pv-tech.org. This UK case exemplifies how regulators are overhauling rules to speed up grid access for clean energy – a critical step to meeting 2030 renewable targets.
• State-Level Grid Modernization (New Jersey, USA): At the U.S. state level, New Jersey approved new Grid Modernization and Interconnection rules in May 2025 to facilitate more DER (Distributed Energy Resource) adoption. The NJ Board of Public Utilities’ updated rules will reduce delays in hooking up projects to the distribution grid nj.gov. Key provisions include requiring utilities to frequently update their hosting capacity maps (so developers know where the grid can accept new solar/storage), establishing a standard pre-application process to inform project feasibility and costs upfront, and creating a formal dispute resolution mechanism for interconnection issues nj.gov. Utilities must also provide a unified web portal to make applying for interconnection more user-friendly and consistent statewide nj.gov. “Increasing the number of distributed energy resources as quickly as possible is a key component of driving down energy costs for ratepayers,” noted NJBPU President Christine Guhl-Sadovy nj.gov. Indeed, the Board highlighted that more solar and storage will lower peak demand and capacity charges, saving customers money nj.gov. The rule changes – years in the making – will make it easier for rooftop solar, community solar, batteries, and other DERs to connect to New Jersey’s grid nj.gov. This reflects a broader regulatory trend across many states: updating interconnection standards, mandating faster processing, and supporting grid upgrades so that small-scale clean energy can be deployed at scale without unnecessary barriers.
• Other Notable Policy Moves: Around the world, various other policy and regulatory developments in this period impacted smart grids and energy management. For example, New Jersey lawmakers advanced bills to address rising energy costs by exploring wave power and by scrutinizing data centers’ energy use newjerseymonitor.com, linking back to the theme of managing new loads on the grid. California’s state assembly considered adjustments to net metering and community solar programs (per the Solar Policy Scoop for June 2025) to balance rooftop solar growth with grid costs solarpowerworldonline.com. In Asia, Vietnam approved a long-awaited Power Development Plan that includes smart grid enhancements and smarter grid management for its fast-growing renewable capacity orrick.com orrick.com. And in Indonesia, as mentioned, new regulations (MEMR 5/2025) established clearer guidelines for renewable energy PPAs and even allow private investment in smart grid infrastructure for the first time orrick.com. Collectively, these examples illustrate that policymakers are increasingly aligning regulations with the needs of a digitalized, decentralized grid – from high-level EU directives down to local interconnection rules – to ensure the power system can accommodate cleaner and smarter energy resources.

Developments in Consumer Energy Management Technologies

• Dynamic Demand Response Programs: June 2025 saw innovative consumer-facing energy programs aimed at demand response and time-of-use optimization. A standout example is Octopus Energy’s launch of “OctopusFlex” in Texas, a flexible time-of-use electricity plan designed to prevent blackouts and save consumers money during summer peaks renewableenergyworld.com. OctopusFlex automatically shifts participating customers’ usage to off-peak hours by leveraging smart home devices like EV chargers and smart thermostats renewableenergyworld.com. Texans on this plan get significantly lower rates overnight (10 PM – 6 AM), encouraging EV charging, appliance use, and pre-cooling of homes during those hours renewableenergyworld.com renewableenergyworld.com. In effect, the program rewards households for being flexible – as Octopus CEO Nick Chaset noted, it lets customers save money “while actively supporting a cleaner, more balanced grid” renewableenergyworld.com. By June’s end, Octopus reported strong enrollment and engagement in Texas, demonstrating that well-designed smart tariffs can harness IoT devices to shift loads and reduce strain during critical periods renewableenergyworld.com. Such demand response efforts are increasingly important as grids face record summer heat and peak demand; they also set a precedent for using price signals and automation (rather than just appeals to conserve) to manage consumer usage.
• Home Energy Management Systems (HEMS) & AI Optimization: The period saw major advancements in AI-driven home energy management solutions. On May 21, Enphase Energy – a leading provider of solar microinverters – announced its new IQ® Energy Management System in France solarquarter.com. This smart home energy system uses artificial intelligence to optimize household energy loads and maximize the use of solar power. The Enphase IQ system integrates with the home’s rooftop solar panels, battery storage, and even third-party devices like EV chargers, heat pumps, and electric water heaters solarquarter.com. Through the Enphase app, homeowners can automatically manage when these devices run, in response to dynamic electricity rates or solar production. For example, the AI might heat water or charge an EV when solar output is high (or electricity prices are low), then pause during expensive peak periods – thereby cutting electricity bills and increasing solar self-consumption solarquarter.com. Notably, France’s policy environment makes this timely: EV ownership has surged 400% since 2020, and the government is pushing to install 1 million heat pumps by 2027 solarquarter.com. With roughly 40% of French homes already using electric water heaters solarquarter.com, the IQ system targets these major loads. It includes an IQ “Energy Router” device to coordinate with popular EV charger and heat pump brands, effectively turning disparate appliances into a cohesive, intelligent energy ecosystem at the home level solarquarter.com. This launch highlights how AI and IoT are empowering consumers to actively manage their energy usage and participate in grid balancing. Similar HEMS offerings are emerging globally – from smart thermostat platforms to intelligent EV charging schedules – all geared toward automating energy savings and integrating distributed resources (like rooftop PV and batteries) into the broader grid.
• Integration of Clean Tech Devices (IoT & Standards): Another important development is the push for standardizing smart home and IoT energy devices to work seamlessly with grids and tariffs. In late May, the industry-backed Mercury Consortium (a nonprofit alliance initiated by EPRI and Octopus Energy’s tech arm) released its first set of technical guidelines for “grid-ready” appliances, focusing initially on electric vehicle chargers renewableenergyworld.com renewableenergyworld.com. The Mercury Consortium – which includes over two dozen utilities and vendors like Con Edison, PG&E, Oracle, and Octopus – published draft requirements to ensure new EV chargers can respond to grid signals, optimize charging times, and give consumers more control renewableenergyworld.com renewableenergyworld.com. Several EV charger manufacturers (Zaptec, Easee, GivEnergy) immediately agreed to adopt these standards renewableenergyworld.com renewableenergyworld.com. The idea is that any Mercury-certified charger (and eventually other appliances like thermostats, batteries, and heat pumps) will share common “functional behaviors” and communication protocols, so they can work with any utility’s demand response programs or smart tariffs out-of-the-box renewableenergyworld.com renewableenergyworld.com. Mercury’s CEO Serge Subiron explained that the goal is to turn interoperability from an ambition into an action plan: “ensure every energy device – from EVs to home batteries and water heaters – is built grid-ready by design” renewableenergyworld.com. This would massively scale up flexibility, as regulators and markets could count on millions of devices responding to incentives in unison renewableenergyworld.com renewableenergyworld.com. By June 2025, Mercury was collecting stakeholder feedback on the EV charger spec and planning to finalize it later in the summer renewableenergyworld.com renewableenergyworld.com. The consortium’s broader aim is to cover all major home energy assets and certify them as “Mercury Enabled” – akin to how Bluetooth certification assured compatibility in electronics octopus.energy octopus.energy. This is a pivotal development in consumer energy tech: it recognizes that standards and certification can greatly accelerate adoption of HEMS, demand response, and IoT integration by removing technical barriers for consumers and device makers alike.
• Smart Appliances and IoT Integration: Beyond formal standards, the mid-2025 period saw growing integration of smart appliances and voice-assistant platforms with energy management. Companies are working on connecting HVAC systems, water heaters, EV chargers, and even kitchen appliances to either utility programs or third-party apps that optimize operation based on grid conditions. For example, some utilities expanded bring-your-own-thermostat programs for summer peak shaving, allowing smart thermostats (like Google Nest or Ecobee) to automatically precool homes and cycle AC during demand response events. In Japan and South Korea, pilot programs connected home battery systems and EVs to grid dispatch signals for frequency regulation. Meanwhile, startups in the EU unveiled AI-based plugs and energy monitors that give consumers itemized control over their devices. While each of these may be small-scale news, collectively they represent a trend: the consumer side of the grid is becoming highly interactive and connected. Home energy management is no longer just about monitoring usage – it’s about intelligent, automated control that benefits both the user (through cost savings) and the grid (through flexibility and peak reduction).

Expert Commentary and Forecasts

• IEA on Investment and Grid Bottlenecks: The International Energy Agency’s World Energy Investment 2025 report, released in early June, provides a big-picture outlook that experts are watching. Global energy investment is projected to reach a record $3.3 trillion in 2025, with two-thirds (about $2.2 trillion) going into clean energy technologies energydigital.com. IEA Executive Director Fatih Birol highlighted that this trend reflects nations boosting energy security and climate efforts despite economic uncertainties energydigital.com. However, Birol also warned of underlying weaknesses in grid infrastructure and the slow progress in many developing regions energydigital.com. In his words, while clean investment is strong, “we see underlying issues in that grid deployment is not keeping up, particularly in emerging economies” energydigital.com. This sentiment was echoed by industry leaders: Frederic Godemel, EVP of Energy Management at Schneider Electric, noted that it’s encouraging to see rising investment, bringing the world closer to the estimated $3.5 trillion needed annually by 2030 to hit net-zero targets energydigital.com. But he cautioned against complacency, saying “we cannot let geopolitical uncertainty or economic headwinds derail progress – the climate crisis doesn’t abide by our political cycles” energydigital.com. Godemel emphasized the need to “move beyond cautious optimism” and to double down on demand-side solutions and digitalization (what Schneider dubs “Electricity 4.0”, the fusion of electric and digital technologies) energydigital.com. The expert consensus is clear: massive grid investments and smart energy management are urgently required to ensure renewable projects aren’t stalled by lack of grid capacity. Analysts point out that in many regions, over a terawatt of renewable projects are waiting in queues due to permitting and grid connection delays sustainablebrands.com. This has led to forecasts that spending on electricity networks (transmission and distribution) will hit $1.5 trillion in 2025, about 50% more than global fossil fuel supply investment energydigital.com energydigital.com. The IEA and others stress that accelerating grid modernization is the linchpin of the energy transition – and that without smarter, more robust grids, renewable deployment and EV adoption will hit serious limits.
• Energy Analysts on AI and Electrification: A major topic of expert analysis in mid-2025 is the impact of AI and electrification on future energy demand. Analysts from Grid Strategies and Deloitte have flagged that the rise of AI data centers could drive an unprecedented surge in electricity consumption reuters.com. One report noted U.S. power demand growth from 2024–2029 is now expected to be five times higher than earlier forecasts, specifically due to AI and digitalization needs reuters.com. If current trends continue, by 2035 AI data centers alone might consume 30 times more power than they do today reuters.com. This is a striking reversal after years of flat or modest demand growth and has experts warning of potential shortfalls if grid infrastructure isn’t scaled up. Industry observers like BloombergNEF analysts predict a new wave of investment in not just renewable generation but also peaker plants, energy storage, and grid upgrades to supply these large loads reliably. On the flip side, some experts see opportunity: AI and machine learning themselves are being harnessed to improve energy efficiency (e.g., AI to optimize data center cooling and workload timing) and to enhance grid management, as discussed. There’s also a view that rising demand from AI and EVs can be met with clean energy if managed wisely. As one MIT Energy Initiative article in June put it, the AI revolution could “spark a clean energy revolution” by driving investment into renewables and storage at unprecedented scale forbes.com – provided policy and innovation align. Nonetheless, utility executives are revising their load forecasts and business plans; some are even seeking regulatory approval for new transmission lines and substations specifically citing AI growth in their territories.
• Industry Leaders and Utilities: Many utility CEOs and grid operators offered commentary in this period about the challenges and opportunities they see. For example, John Podesta, the White House’s senior advisor for clean energy innovation, stated in June, “We need a bigger, smarter, more resilient grid”, when announcing federal grid grants sustainablebrands.com. He underscored that expanded transmission and upgraded distribution are vital for the clean energy future and ongoing manufacturing boom. Utility executives in Europe, at forums like Eurelectric’s Power Summit 2025, stressed the need for regulatory support to accelerate grid build-outs; they often cite lengthy permitting as the number one hurdle. Researchers and grid specialists also weighed in – a German study by consultancy AXXCON (released in June) starkly concluded that the energy transition could “fail on the last mile” if distribution grids aren’t digitized and expanded axxcon.com. That survey of German utilities found only 3% have fully integrated smart grid tech and 44% of grid infrastructure is decades old axxcon.com, prompting calls for policy intervention and new financing models. Meanwhile, some experts are optimistic about specific technologies: Many point to energy storage as a game-changer now coming of age. The CEO of Fluence (a global storage integrator) noted in a July interview that advanced battery deployments are enabling grids to operate with higher renewable penetration than ever, effectively acting as virtual peakers and providing inertia services with grid-forming inverters. Forecasters generally agree that by the late 2020s, we’ll see exponential growth in VPPs (virtual power plants), EV-grid integration (V2G), and AI-driven grid automation. The consensus among industry thought leaders is that the 2025–2030 period will be critical: decisions made now on grid investment, standards, and policies will determine whether we can meet climate targets while keeping the lights on in an increasingly electrified world.

Emerging Trends and Market Analysis (June–July 2025)

• Rapid Electrification of Transport and Heating: Market data and trends in mid-2025 show that electrification of vehicles and heating is accelerating, which in turn drives smart grid development. As noted, France’s EV fleet quadrupling since 2020 and its aggressive heat pump rollout are mirrored in other countries solarquarter.com. Across Europe, EV sales regularly exceed 15–20% of new car sales each month, and some analysts project that by 2030 EVs could add hundreds of TWh of new load on European grids. This has made smart charging and Vehicle-to-Grid (V2G) capabilities a key emerging trend. Automakers and utilities are collaborating on pilots where EVs serve as grid resources, feeding power back during peaks or modulating charge rates to absorb surplus renewables. In Japan, for instance, July 2025 saw expansion of a V2G pilot to allow Nissan Leaf owners to provide power to the grid during summer peaks, incentivized by utility credits. Likewise, electric heat pumps are surging in popularity (partly due to high gas prices), which has utilities promoting smart thermostats and thermal storage to manage their impact. The overall trend is that formerly passive loads (cars, home heating) are becoming interactive. This is evident in markets like California, where flexible load programs for EVs and HVAC have grown double-digits year over year. Market research firms predict the global home energy management market will grow from $26.7 billion in 2024 to $29.3 billion in 2025 globenewswire.com, reflecting this wave of electrification and the need for management tech to accompany it.
• Growth of Virtual Power Plants (VPPs) and Aggregators: An emerging trend highlighted in June–July 2025 analysis is the proliferation of virtual power plants – networks of decentralized, small resources that are aggregated to act as a single power plant. Companies like NextEra, Enel X, Tesla, and Octopus are rapidly expanding their VPP offerings. In Australia, the SA Government reported that its Tesla-backed VPP (combining thousands of home batteries) responded to multiple grid events in early 2025, providing contingency reserves during outages. The Blue Whale Energy project in Southeast Asia is essentially building a new VPP using rooftop solar+storage techedt.com. BloombergNEF’s market outlook released in June projected that VPP capacity worldwide will more than triple by 2030, reaching over 60 GW, as policies in the EU (like the Clean Energy Package) and US (FERC orders enabling aggregation in markets) take effect. These VPPs are seen as a trend that enhances grid resilience and flexibility without massive new generation build – effectively “software-defined power plants” orchestrating existing assets. However, analysts note that market rules need to catch up: many regions still lack compensation mechanisms for aggregated resources, though progress is being made (e.g., India’s draft vPPA guidelines for corporate renewables, mentioned in Orrick’s APAC Energy Pulse orrick.com).
• Grid Modernization Market Growth: The market for smart grid technology itself is on an upward trajectory. Industry reports published in this period indicate robust growth rates for smart grid investments. One analysis (GlobeNewswire, June 2025) forecasts the global smart grid technology market will grow at ~17% CAGR from 2025 to 2030, driven by surging demand for energy efficiency, grid reliability, and renewable integration globenewswire.com. Key segments expected to see the highest growth include advanced metering infrastructure (AMI), distribution automation, and grid cyber-security. This aligns with observations that utilities worldwide are increasing budgets for digitizing distribution networks and deploying sensors, as well as fortifying grids against cyber threats (especially after some high-profile incidents in 2024). Another emerging segment is microgrids – June saw new microgrid projects announced for communities and campuses aiming for resilience. The global microgrid market is projected to reach $191 billion by 2030 according to one energy news source energynews.pro, and many of these will interface with the main grid as flexible nodes. Energy storage is another critical piece: a report by Mercom Capital highlighted that battery storage investments are hitting record highs, with $66 billion expected in 2025 for grid-scale and behind-the-meter storage energydigital.com. All these data points paint a picture of a rapidly expanding market for smart grid and EMS solutions, underpinned by the energy transition and the need to modernize aging infrastructure.
• Digitalization and Data Gaps: Despite growth, experts are also identifying gaps and lagging areas as trends to watch. The AXXCON study in Germany is telling – it found a “dramatic backlog” in smart meter rollout and digital grid tech among distribution operators axxcon.com. Only 3% had extensively adopted smart grid tech, while two-thirds were only in pilot or planning stages axxcon.com. Importantly, only 11% felt their digital infrastructure was ready for the coming data influx, and only ~20% had even experimented with AI for grid control axxcon.com. This highlights a trend (or anti-trend) of uneven digitalization: some regions (like Italy or Nordic countries) have near-fully digital grids, while others (including large parts of Germany, Eastern Europe, and developing nations) are just beginning. Financial constraints are part of this – the German survey estimated only one-third of needed grid investments (around €50 billion) could be financed by the operators alone axxcon.com. Similar analyses in the U.S. flagged that rural co-ops and municipal utilities often lack capital for smart grid upgrades without federal support. The trend here is that policy and innovative financing will be needed to address these digital divides. On a positive note, more attention is being paid to it: the EU’s draft “Electricity Grid Action Plan” (open for consultation until July 8, 2025) is specifically looking to mobilize up to €584 billion for power grids by 2030, ensuring that grid investments don’t lag generation investments strategicenergy.eu. This EU initiative, spurred by industry advocacy, is an example of emerging strategic focus on grids (“No modern grids, no transition” as one headline put it). In summary, market analysis during this period not only charts growth but also identifies the critical need to accelerate grid digitalization efforts as an emerging priority.
• Consumer Behavior and Energy Prices: Finally, an emerging trend in summer 2025 is the interaction between consumer energy behavior and price volatility, which ties back to smart energy management. With energy prices high in many regions (Europe’s electricity prices remained elevated compared to pre-2021 levels), consumers are increasingly adopting energy-saving technologies. Smart thermostat sales are up, solar PV installations continue at record pace in many countries, and interest in home batteries is growing – all as consumers seek to control bills and ensure reliability. Reports from the UK suggest that as of July’s price cap change, many households are switching to time-of-use tariffs where available, but some consumer advocates urge Ofgem to tighten smart meter performance standards so that billing is accurate for switchers endfuelpoverty.org.uk. In the U.S., utilities in states like California and New York launched campaigns in June to enroll more customers in demand response ahead of summer heat waves, using messaging that ties bill savings to community grid support. This points to a trend of greater public awareness and participation in energy management. As one energy consultant wrote in an Energy Central blog mid-June, “Energy consumers are now key players – prosumers with rooftop solar, flexible users with smart homes, all contributing to grid stability. The challenge and opportunity for utilities is to harness this through engagement and digital tools.” In other words, the market trend is moving toward a more decentralized, participatory model of energy management, which all the technology and policy developments discussed above are trying to facilitate.

Conclusion

In summary, June–July 2025 has been a dynamic period for smart grids and energy management systems worldwide. Technical innovations – from AI-driven grid management and 5G-enabled meters to integrated digital platforms – are equipping the grid to be more intelligent and adaptive. We’ve seen major investments by governments and industry, whether it’s multi-billion-dollar utility plans, federal grid resilience grants, or cutting-edge battery projects, all aimed at bolstering grid capacity and flexibility. On the policy front, regulators are actively removing barriers (streamlining connections, updating interconnection rules, incentivizing flexibility) to accelerate the transition to smart, clean grids. Meanwhile, consumers are being empowered through smart tariffs, home energy AI systems, and IoT integration, turning homes and businesses into active grid participants. Expert commentary during this time reinforces that while progress is being made – record clean energy investments and successful pilot programs – significant work remains to modernize the “last mile” of distribution grids and to keep pace with fast-evolving challenges like soaring AI-related demand.

Looking ahead, the trends emerging now suggest that the rest of 2025 and beyond will feature rapid scaling of these solutions. We can expect to see more standardization (so devices can easily join virtual power plants), more emphasis on cybersecurity and grid resilience, and continued growth in decentralized resources. Market analysts are largely optimistic that with the right mix of investment and innovation, smart grids will enable the massive renewable build-out and electrification underway, ensuring reliability and affordability. In essence, the developments of June–July 2025 underscore a pivotal truth: the grid is the backbone of the energy transition, and around the world stakeholders are doubling down on making that grid smarter, stronger, and more responsive than ever.

Sources

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2. Emma Job, “Blue Whale Energy teams up with UNIGRID to bring safer urban battery storage to Southeast Asia,” Tech Edition, June 25, 2025 techedt.com techedt.com
3. Chloe Williment, “IEA Report: 2025 Energy Investments Set to Hit $3.3tn,” Energy Digital Magazine, June 6, 2025 energydigital.com energydigital.com
4. “Clean energy consortium releases preliminary EV charger guidelines,” Renewable Energy World, May 30, 2025 renewableenergyworld.com renewableenergyworld.com
5. “NJBPU Announces Approval of Grid Modernization Rules,” New Jersey Board of Public Utilities Press Release, May 21, 2025 nj.gov nj.gov
6. Valerie Volcovici and Jarrett Renshaw, “Exclusive: Trump plans executive orders to power AI growth in race with China,” Reuters, June 27, 2025 reuters.com reuters.com
7. S&P Global Market Intelligence, “Distributech 2025: More intelligent energy grid looms as utilities adopt AI,” Research report, May 5, 2025 spglobal.com spglobal.com
8. “UK grid connection reform to unlock 65GW of utility-scale solar,” PV Tech News, April 16, 2025 pv-tech.org pv-tech.org
9. “Commission continues action to lower energy bills… guidance on renewables, grids…,” European Commission – Energy News, July 2, 2025 energy.ec.europa.eu energy.ec.europa.eu
10. “Enphase Energy Launches AI-Driven IQ Energy Management System in France,” SolarQuarter, May 21, 2025 solarquarter.com solarquarter.com
11. AXXCON Management Consultants, Grid Study 2025: Barely any smart technology and huge financial gaps (Press release), June 3, 2025 axxcon.com axxcon.com
12. “Clean energy investment is set to double that of fossil fuels in 2025,” IEA World Energy Investment Report 2025 – via Energy Digital energydigital.com energydigital.com
13. New Jersey BPU President quote on interconnection, NJBPU Press Release, May 21, 2025 nj.gov nj.gov
14. “Mercury Consortium releases draft EV charger requirements,” Renewable Energy World, May 30, 2025 renewableenergyworld.com renewableenergyworld.com
15. “Open Power AI Consortium plans to fuel grid modernization with data sharing,” Utility Dive, April 29, 2025 utilitydive.com utilitydive.com
16. John Podesta, quoted in “US Invests $2.2B Into Grid Upgrades for Climate Resilience,” Sustainable Brands, Sept 2024 sustainablebrands.com
17. Frederic Godemel (Schneider Electric) commentary in Energy Digital, June 2025 energydigital.com energydigital.com
18. “Indonesia’s PLN releases RUPTL 2025–2034 (incl. smart grid and private investment),” Orrick APAC Energy Pulse, June 2025 orrick.com
19. Christine Guhl-Sadovy (NJBPU President) quote, NJBPU Press Release, May 2025 nj.gov
20. Serge Subiron (Mercury Consortium CEO) quote, Renewable Energy World, May 30, 2025 renewableenergyworld.com renewableenergyworld.com
21. Fatih Birol (IEA) quote, Energy Digital, June 2025 energydigital.com
22. “Octopus Energy unveils ‘Project Mercury’ alliance for smart devices,” Octopus Energy Press Release, Oct 17, 2024 (referenced in media) octopus.energy octopus.energy
23. “Smart meter rollout turned on for 2025,” energy.gov.au News, Nov 29, 2024 energy.gov.au energy.gov.au
24. Molly Green & George Heynes, “Ofgem approves grid queue reform to unlock solar,” PV-Tech, Apr 16, 2025 pv-tech.org pv-tech.org
25. Herman K. Trabish, “EPRI’s Open Power AI Consortium…,” Utility Dive, Apr 29, 2025 utilitydive.com utilitydive.com