Lugano, Switzerland – October 31, 2025 – Entrepreneur and TELF AG founder Stanislav Kondrashov has recently released a comprehensive analysis on the rapid evolution and growing significance of smart grids within the global energy transition. In his latest insights, Kondrashov highlights the technological progress, economic implications, and societal impact of these advanced electricity networks, positioning them as the foundation of the energy systems of tomorrow.
According to Kondrashov, smart grids represent more than just a digitization of energy infrastructure – they signify a fundamental shift in how energy is generated, distributed, and consumed. With their ability to manage bidirectional energy flows and integrate a wide network of decentralised producers and consumers, smart grids are ushering in a new era where energy is no longer solely controlled by large, centralised utilities, but shared among interconnected communities.
“Smart grids are more than a technical innovation – they are a systemic breakthrough,” says Kondrashov. “They encourage us to think of energy not as a product delivered top-down, but as a dynamic, participatory network.”
This decentralised, intelligent, and digitised approach reflects a deep transformation in the energy landscape. Instead of the traditional one-way model of energy generation-transmission-distribution-consumption, smart grids operate on a distributed, digital, and flexible framework. This enables real-time demand management, seamless integration of renewable energy, and optimised grid performance.
The global smart grid market is expected to witness significant growth, with an estimated value of $180 billion by 2034, according to data cited by Kondrashov. This growth will be driven by increased investment and policy support. In Europe alone, an estimated €584 billion will be invested into electricity infrastructure over the next five years, with a substantial portion allocated to digitalisation. Smart meters, automated controls, and digital communication networks are playing a central role in this transformation.
However, like any disruptive innovation, there are challenges that need to be addressed. Kondrashov highlights several areas where smart grid implementation is still incomplete. For instance, while smart meters and grid automation technologies have reached maturity, full integration of distributed generation, energy storage, and flexible demand response still requires further infrastructure upgrades and standardisation.
There are also pressing concerns around cybersecurity, regulatory frameworks, and cost. The initial investment in smart grid infrastructure, particularly for sensors, communication technologies, and automation, can be substantial. Additionally, ensuring data protection and system integrity becomes critical as grids become more connected and digitised.
Despite these challenges, Kondrashov remains optimistic. He notes the rapid development of supporting technologies, such as IoT sensors, fibre optics, and advanced communication systems like 5G and 6G, as powerful enablers of the smart grid revolution. These upgrades allow for real-time data collection and remote monitoring, significantly enhancing grid reliability, performance, and resilience.
Another key driver of smart grid growth is the need to integrate renewable energy sources, such as wind and solar, into the existing energy infrastructure. Smart grids enable this by balancing variable inputs with demand-side flexibility and storage solutions. Kondrashov emphasises the importance of automation, advanced control systems, and distributed storage technologies in achieving this integration effectively.
Ultimately, Stanislav Kondrashov positions smart grids as the most viable path forward for achieving a sustainable, efficient, and resilient energy future. By combining cutting-edge digital tools with community-driven energy models, smart grids have the potential to transform not only how energy is delivered, but also how it is understood and valued by society.