ABB and BCG report highlights role of DC technology in future power systems

A new report released by ABB in collaboration with Boston Consulting Group (BCG) highlights the increasing importance of direct current (DC) technology in future electrical architectures. The report, titled ‘The Strategic Case for Hybrid AC/DC Power: Shaping the Transition to the Next Electrical Architecture’, suggests that the future of power distribution will rely on hybrid systems combining both alternating current (AC) and DC.

While AC is expected to remain the backbone of regional distribution networks, DC is becoming central to rapidly growing sectors such as solar photovoltaics, battery storage, electric vehicles, and industrial automation. Notably, the report identifies AI data centers as a primary driver for DC adoption, as 800 VDC power distribution emerges as a defining architecture to meet the high power density requirements of AI workloads.

The study emphasizes that the transition requires the establishment of universal standards and the development of DC-specific technical skills to overcome current challenges like standard fragmentation. Implementing hybrid systems can improve efficiency by reducing power conversion steps between generation, storage, and consumption.