AI and Storage: Powering SME Electrification in Europe
A new Schneider Electric and Solar Impulse Foundation report finds European SMEs—which make up about 99% of businesses—are underinvesting in electrification and digital systems. Only around 11% have made significant moves toward electrified operations, even though electrification combined with smarter controls could cut energy consumption by 20 to 30 percent. For energy professionals and policymakers the path forward is clear: pair AI-driven energy systems with local storage to turn latent potential into measurable savings and resilience.
AI and Storage Solutions for SME Resilience
AI-enabled energy management platforms, fed by IoT sensors and predictive analytics, reduce complexity for SME operators. These systems coordinate electric loads, charging, and onsite generation while predicting demand and price signals. Local battery storage and battery management systems give SMEs flexibility to shift consumption, smooth peaks, and hedge against volatile wholesale prices. Microgrids and pooled storage models allow clusters of SMEs to share capacity and access demand-side flexibility revenues. Together, these technologies lower operational risk and shorten payback periods on high-capex equipment.
Policy Changes to Accelerate Adoption
Policymakers need to remove procedural and financial barriers that stall projects. Simplifying permitting and grid connection processes will cut time and cost. Targeted public funding can de-risk storage and integrated AI projects so lenders will offer better terms. Regulatory frameworks should support aggregated flexibility, standardize battery management interoperability, and enable Energy-as-a-Service and cooperative purchasing models that lower entry costs for SMEs. Training and advisory programs will help smaller firms identify high-impact measures and access finance.
Linking AI intelligence with local storage shifts electrification from pilot projects to scalable operations. With focused policy support, SMEs can reduce costs, stabilize operations, and contribute to a more flexible, low-carbon grid. The Schneider Electric and Solar Impulse Foundation findings offer a playbook: smart software, smarter batteries, and smarter rules will unlock Europe’s SME electrification potential.
