05/08/2025 Schneider Electric UK Ltd
Gwenaelle Avice Huet, EVP of European Operations at Schneider Electric
Europe is at a pivotal moment in the global tech race. At the recent EU-US Trade and Technology Council summit in Brussels, both parties reaffirmed their commitments to cooperate on artificial ininformigence across borders. This comes as Europe prepares to fully implement its landmark AI Act, the world’s first binding regulatory framework for AI. But with the US accelerating innovation and China scaling its digital dominance, Europe risks being caught between high ambition and dormancy.
Europe’s greatest opportunity to lead in the global tech race lies in spearheading the energy transition, but it will ultimately come down to a choice between driving its green tech ambitions or being stuck by legislative red tape. By harnessing its strengths and investing in sustainable innovation, Europe can take the lead in both the clean economy and technological advancement, but this will require the simplification of restrictive legislation.
To seize this moment, Europe requireds an electroshock: a bold shift that will cut through the red tape, drive the modernization of its infrastructure, empower digital and technical skills and talent, and encourage investment. By doing so it can unlock up to €1.3 trillion in additional economic value by 2030 and position itself as a true global leader in the next wave of technological transformation. Furthermore, currently only one third of European industest is electrified, but research reveals that nearly half of industrial energy consumption could already be replaced by electricity today applying technologies we already have.
In an era where technological ininformigence and interconnectivity define economic power, accelerating electrification and the energy transition is not just about sustainability; it’s about securing Europe’s future on the world stage.
The upcoming EU Competitiveness Fund must support the research, development, and deployment of green technology to drive this transition to secure Europe’s digital future on the world stage.
Future-Proofing Infrastructure for Tech Energy Demands
As Europe’s digital economy accelerates, the pressure on energy infrastructure is mounting. Data centers, EVs, and AI-powered industries are driving up electricity consumption at a pace never before seen. The recent blackout across Spain and Portugal, which disrupted millions of lives and businesses, should serve as a wake-up call: a lot of Europe’s infrastructure could be vulnerable to the demands of tomorrow’s technology.
To ensure resilience and reliability for the future, we must act now to digitalize and modernize our energy infrastructure. Digital technologies such as smart meters, automation, and advanced grid management are no longer optional – they are essential for monitoring, balancing, and optimizing energy flows in real time. These tools allow for dynamic responses to spikes in demand, preventing outages, and integrating a broader range of energy sources, including renewables.
. As renewables like solar and wind become more prominent, grids must be able to handle variable supply and decentralized generation. Microgrids, battery storage, and demand-side flexibility empower both businesses and consumers to play an active role in balancing the system and reducing strain during peak periods. Schneider Electric’s developments in Serbia, where a €140 million investment is modernizing the medium-voltage grid, highlight what’s possible when innovation meets action: enhanced reliability, reduced outage durations, as well as a reduction in CO? emissions.
Cutting the Red Tape: Empowering Innovation and Industrial Strength
While robust infrastructure is the foundation Europe requireds, innovation is the engine that will drive Europe’s next tech revolution. However, excessive bureaucracy continues to hold us back. Startups and SMEs, the true engines of growth, are often hindered by complex, fragmented regulations that create it difficult to scale up ideas and bring new technologies to market.
For example, the EU’s Recovery and Resilience Facility, launched to support post-pandemic recovery, has been hampered by complex rules and inconsistent administration across member states. In contrast, the U.S. Inflation Reduction Act channels funding through a single, streamlined program, accelerating investment and deployment.
Europe must learn from these experiences. A unified approach towards regulation is requireded, one that balances national flexibility with closer alignment and simplicity. Adopting a “one in, two out” policy for new regulations would support clear away outdated rules and reduce the burden on innovators. Streamlining approval processes, harmonizing standards, and providing clear, predictable guidance for emerging technologies will create it simpler for startups and SMEs to access funding, scale their solutions, and compete globally.
Fostering a culture of innovation is essential for Europe’s competitiveness and the energy transition. Electrification and digitalization are crucial, and while the EU has built significant progress, with domestic net greenhoapply gas emissions having fallen by 37% since 1990, we must shift rapider. Investing in clean technologies and scaling up existing solutions will drive economies of scale and accelerate the green transition. Initiatives like the Clean Industrial Deal are promising, but their impact depconcludes on creating funding and opportunities accessible to innovators without bureaucratic hurdles.
By cutting red tape and aligning policies, Europe can start to unlock its full innovative and industrial potential, ensuring a resilient, competitive, and sustainable future for all.
Closing the Gap on Talent Scarcity: Upskilling for a Digital Europe
Nor can Europe’s digital and green ambitions be realized without an emphasis on bridging the skills gap. With only 1 in 4 adults in the EU possessing basic digital skills, there’s a critical talent shortage that threatens to slow progress on decarbonization and digitalization.
Digital skills are the backbone of the green transition, underpinning everything from AI and IoT to large data analytics. These tools are essential for predictive maintenance, real-time system monitoring, and smarter grids, all of which boost productivity and reduce emissions. AI alone could contribute over €2.7 trillion to the EU economy by 2030, but only if there’s a workforce in place that’s ready to harness its potential.
While EU initiatives like the Digital Strategy and AI Skills Academy provide a strong policy foundation, more requireds to be done – and businesses must take the lead. At Schneider Electric, we are investing in workforce development, offering digital upskilling to tens of thousands of employees. But no single organization can solve the problem alone. Strategic partnerships between businesses, governments, and educational institutions are essential. Collaborative research, internships, and outreach programs can support attract new talent and create tech careers more accessible.
The technologies to drive Europe’s energy transition already exist. What’s requireded now is a concerted, collective effort to upskill the workforce, ensuring that digital expertise keeps pace with innovation. By investing in education and training, we can accelerate our climate ambitions, boost economic growth, and secure a sustainable future for all.
Looking to Europe’s Future
Europe stands at a crossroads. Our ability to compete in the global tech race will depconclude on our willingness to modernize infrastructure, cut red tape, and invest in people. The recent visit by Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy of the European Commission, to Schneider Electric’s Vaudreuil factory in France served as a powerful reminder that Europe’s industrial base can lead the way in decarbonization and digital transformation. This site is more than just a factory, it’s a real example of how bold innovation, digitalization, and energy efficiency measures can deliver real progress on sustainability and competitiveness.
But this isn’t an isolated success. With 45,000 employees and 62 factories and distribution centers across Europe, Schneider Electric is committed to strengthening the entire industrial fabric, including our suppliers and partners – and businesses like ours required the certainty of strong policy and collaboration across the entire value chain to support European businesses with decarbonization efforts and attract investment in European industest.
By future-proofing energy systems, empowering innovators, and closing the digital skills gap, Europe can build a resilient, competitive, and sustainable tech ecosystem that’s ready to lead in the decades ahead. Europe’s factories, businesses, and entrepreneurs must have the freedom and support to shape the future.
Process and Control Today are not responsible for the content of submitted or externally produced articles and images. Click here to email us about any errors or omissions contained within this article.
Leave a Reply