The New Era of Distribution Networks

The energy transition is radically transforming electricity distribution grids. The massive integration of renewable generation, storage systems, and the electrification of transport with electric vehicles impose new challenges for system stability and security. In this scenario, power electronics and, in particular, Energy in the Cloud technologies are emerging as indispensable elements to guarantee a robust and flexible operation of the grids.
 

Traditional grids, based on synchronous generation, were characterized by natural inertia that allowed them to absorb disturbances and maintain stable frequency and voltage. However, the progressive replacement of these plants with renewable generation connected through inverters significantly reduces the available inertia and poses new technical challenges. From 2026 onwards, it will be mandatory for newly connected plants to incorporate Grid Forming capabilities, with the aim of providing the system with the resources needed to sustain voltage and frequency during instability events.
 

One of the main risks is the formation of unintentional islands. Unlike traditional Grid Following inverters, which depend on a strong grid to synchronize, Grid Forming inverters are capable of autonomously establishing a voltage and frequency reference. This means that, under certain conditions, they can keep a portion of the grid active even if it becomes disconnected from the main system, creating public safety risks and compromising existing protection schemes. In addition, the migration towards grids dominated by power electronics requires rethinking protection systems, since phenomena such as ground faults or load imbalances behave differently under electronic control. For this reason, the need for common methodologies and regulatory frameworks that allow DSOs to assess risks and implement mitigation solutions becomes critical.
 

Against this backdrop, Energy in the Cloud (EIC) is firmly committed to solutions based on advanced power electronics as a key element of the energy transition. EIC’s approach combines voltage and frequency control with active power flow management capabilities, both in Front-of-the-Meter (FtM) and Behind-the-Meter (BtM) applications. In the FtM domain, EIC solutions enable distributed generation or storage systems to actively support the grid, providing stability services that previously could only be delivered by conventional power plants. In the BtM domain, power electronics devices installed in industries, businesses, and households give prosumers the ability to integrate into grid management, contributing to supply quality and generating added value through the provision of ancillary services.
 

EIC’s innovations go beyond basic voltage control. The company is developing advanced algorithms for detecting and mitigating unintentional islands—one of the main concerns of DSOs—while also enabling the safe operation of intentional microgrids. This is especially relevant in critical applications such as hospitals, strategic industrial facilities, or local energy communities, where resilience and service continuity are fundamental.
 

Another pillar of EIC’s approach is digitalization. The integration of its solutions with SCADA, ADMS, and cloud platforms enables an intelligent, self-organizing grid model, capable of responding in real time to disturbances or changing operating conditions. This reduces the need for costly infrastructure reinforcements, optimizing the use of existing assets through distributed and coordinated control.
 

The benefits of this technological commitment are manifold. First, the stability of the electricity system is ensured even with high penetration of intermittent renewables, something essential to meet decarbonization targets. Second, operating costs are optimized and investments in physical grid reinforcements are minimized thanks to the advanced control offered by power electronics. In addition, system resilience is increased in the face of contingencies, allowing grid segments to be isolated or reconnected without compromising safety. Finally, end consumers are empowered: thanks to BtM solutions, they can become active players in the energy transition, directly contributing to system balance.
 

The evolution of distribution grids is no longer a matter of choice but a strategic necessity to ensure the viability of the energy model we are moving toward. Power electronics applied to voltage and frequency control become a fundamental pillar of this process. In this new scenario, EIC positions itself as a decisive player, delivering innovative solutions that make the vision of a more flexible, secure, and sustainable electricity system a reality. The key issue will not be whether these technologies are deployed, but how to do so efficiently and in a coordinated way. All stakeholders must work together—and EIC is ready to lead the way.