AC to DC: Direct current to power the grid of tomorrow
Vic Shao, CEO and Founder of DC Grid
One of the biggest challenges faced in the future of energy isn’t the development and government backing of new technologies, but rather the wiring required to support them, writes Vic Shao, CEO and Founder of DC Grid.
After working in energy storage and fleet electrification over the past fifteen years, one thing has become clear: the traditional alternating current (AC) grid, which has served us for over a century, can’t meet the demands of rapid clean energy adoption, especially in power-hungry sectors like electric vehicle (EV) infrastructure and AI-driven data centres.
Producing clean energy is no longer enough — we need to deliver it where and when it’s needed and in a timely fashion. While smaller projects might take three to four months to connect to the grid, larger projects requiring megawatts of power can face delays of three to seven years, or no upgrade path at all. These limitations, inherent to the AC grid, slow the growth of crucial clean energy solutions, making it difficult for businesses to plan, scale, and budget effectively. In a time where sound business models will take precedence, we need other options for power.
Current war #1
In the late 19th century, a heated competition, famously dubbed the “War of Currents,” arose between Thomas Edison and Nikola Tesla.Edison championed direct current (DC), emphasizing its safety and reliability for consumers, while Tesla, with the support of George Westinghouse, advocated for alternating current (AC) due to its ability to efficiently change voltage levels with transformers, making it ideal for long-distance power transmission.
AC eventually became the standard for power distribution in the early 20th century due to the technological limitations that restricted DC’s practicality. Power stations had to be located near consumers to support DC systems, making them impractical for widespread application. In contrast, AC’s efficiency in transmitting electricity over long distances secured its dominance and shaped the modern electrical grid that remains in place today.
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Current war #2
Today, we face a massive rise in the need for faster and more energy to power things. A major inefficiency of the aged AC grid lies in the need to convert DC power to AC for transmission, only to convert it back to DC at the point of use. With most of today’s renewable energy generation (solar panels, batteries) and many end-use devices (EV chargers, data centers) being inherently DC-based, it just doesn’t make sense to use AC anymore. Each of these conversion steps results in up to 20% of energy losses.
Also, with centralised power generation carried over transmission and distribution power lines, up to 33% of AC energy is lost in transit through resistive, capacitive, and inductive effects. By eliminating these unnecessary conversions and losses, DC generation at the point of consumption can provide a more streamlined and efficient approach to delivering power, reducing energy waste and enhancing overall system reliability.
In terms of deployment, DC power systems also offer greater flexibility. Unlike traditional AC grid upgrades, which require extensive construction, permitting, and infrastructure changes, DC power solutions can be deployed much more rapidly. Modular, containerised systems can be assembled and operational in a matter of weeks, providing the capacity needed to support growing energy demands without the long delays associated with utility interconnections.
DC for EV charging
One of the most immediate and pressing applications for DC power is in the deployment of EV charging infrastructure. The birth and continued growth of electric vehicles hinge on the availability of robust charging infrastructure, especially for fleets. Initiatives like California’s Advanced Clean Trucks mandate (which requires transitioning to electric trucks by 2035) simply won’t succeed without stronger charging support. Without that support, we will likely see many requests for extensions to meet the mandate, as the wait to upgrade power capacity at charging sites is just too long.
With DC power systems, instead of waiting years for utility upgrades, businesses and municipalities can instal high-capacity charging stations in a matter of weeks or months, allowing them to scale their EV fleets without being held back by infrastructure delays. Highway corridor electrification projects particularly benefit from DC solutions, where modular solar-plus-storage systems enable quick deployment without reliance on rural grid connections. These systems can power long-distance routes, connecting major cities while reducing reliance on fossil fuels.
Beyond EVs
The potential of DC power extends far beyond transportation and EV charging. Any large energy consumer—from data centers to manufacturing facilities—can benefit from the speed and efficiency of DC power delivery. As businesses increasingly rely on digital infrastructure and automation, the demand for reliable, high-capacity power is only going to grow. The ability to meet this demand quickly, without the long delays of the traditional grid, will be a key driver of economic growth and sustainability in the coming decades.
DC power systems also offer efficiency and environmental benefits. For example, DC-based solar farms require less land than their AC counterparts, reducing the environmental footprint of renewable energy projects. This is particularly important in urban environments, where space is limited and the need for efficient land use is critical.
Clean energy future: One step at a time
DC technologies can help bridge the gap between today’s infrastructure and the energy demands of tomorrow with the delivery of efficient and quick power. This is not just about making incremental improvements to the existing grid—it’s about rethinking how we deliver power entirely and in a way that supports the rapid growth of clean energy technologies.
The journey to a zero-emission future will require entrepreneurs, innovators, and policymakers to focus on deploying practical, scalable solutions that will help us reach our end goal. An all-or-nothing approach is not the way to go. Progress, not perfection, is key for our next era in cleantech and DC can help get us there.
About the author
Vic Shao is a 3x cleantech entrepreneur and the founder of DC Grid, a company focused on delivering rapid power solutions for large energy consumers through direct current technology. He previously founded Green Charge Networks and Amply Power, both of which were acquired by major energy companies.
