Schneider Electric: Nation 'pioneer' in energy shift

China is a "pioneer" in the global energy transition, outpacing other nations through consistent long-term planning and massive infrastructure investment, according to a senior executive.

"You can call us a foreign company, but we are extremely local," said Frederic Godemel, executive vice-president of energy management at Schneider Electric, emphasizing the French MNC's deep roots in China.

Godemel said China remains a distinct outlier in the global landscape, characterized by its unparalleled commitment to electrification and green development.

This confidence is underpinned by robust market fundamentals. A recent report by UBS has predicted that China's power demand growth could surge to 8 percent annually between 2028 and 2030 — double the previous estimate of 4 percent. This signals the arrival of a five — to 10-year "super cycle" for the domestic power industry, driven by a resonance of exploding demand and supply-side reshaping.

In an exclusive interview with China Daily, Godemel highlighted that China's advantage stems from a "three-pronged" investment strategy — investing simultaneously in power generation, grid infrastructure and the demand side. This strategy is consistently executed through the recommendations for formulating the 15th Five-Year Plan (2026-30).

Recent policy announcements have further validated this approach. State Grid Corp of China recently announced that fixed-asset investment during the 15th Five-Year Plan period is expected to reach 4 trillion yuan ($556 billion), a 40 percent increase from the previous FYP period.

The investment will focus on new power systems and ultrahigh voltage (UHV) transmission channels to meet the targets set by the National Development and Reform Commission, which aims for "West-to-East Power Transmission" capacity to exceed 420 million kilowatts by 2030.

"If you want a resilient electrical system, you need to anticipate 10 years in advance. Not all countries have done that," he said. "Better to anticipate than to be late."

For Schneider Electric, China is not only a market but also a crucial hub for innovation. Godemel pointed to the company's research and development setup in Shanghai, one of its largest globally, where technologies are developed not only for the local market but are increasingly exported to the rest of the world.

He cited partnerships with Chinese companies like StarCharge and HyperStrong as examples of this "China for Global" dynamic. Schneider Electric is collaborating with these firms to develop charging and storage solutions that are subsequently deployed in Europe, leveraging China's advanced position in the new energy sector.

Godemel's bullish view on China came after his recent return from the World Economic Forum in Davos. There, he observed a concerning trend: global attention on sustainability appeared to have waned compared to previous years, with many Western nations now scrambling to catch up after years of underinvestment in their electrical grids.

Godemel said the world is facing a surging demand for energy driven by population growth and the rise of energy-intensive technologies like artificial intelligence. He noted that global electricity demand is projected to surge significantly, creating a massive gap that will require infrastructure typically taking five to 10 years to construct. In this context, China's strategic foresight has positioned it as a global leader.

To meet these future demands, a key focus for Schneider Electric's roadmap is the integration of artificial intelligence into energy management. Godemel said he believes that the ultimate role of AI is to "simplify complexity".

Beyond efficiency, Godemel highlighted AI's potential in enhancing safety for frontline electricians. He envisions smart panels that can "speak" to operators in natural language, actively warning them of live currents and potential hazards during maintenance, thereby reducing workplace accidents.

This vision is already a reality in Schneider Electric's own facilities. The company's factory in Wuxi, Jiangsu province, recognized as a "Sustainability Lighthouse", has utilized AI to reduce carbon emissions. Similarly, the Putuo factory in Shanghai has shortened new product development cycles by 63 percent through digital integration.

Looking ahead, Godemel sees immense potential in the retrofitting of existing buildings. As the volume of new construction in China stabilizes, the focus is shifting toward making existing infrastructure more efficient and autonomous. He envisions a future where the "electrical revolution" mirrors the automotive revolution.

"We want to be at the forefront of this revolution," Godemel concluded, affirming that Schneider Electric will continue to deepen its partnerships and R&D presence in China to drive the next wave of global energy innovation.