Strengthening the Energy Grid: How Power Electronics and Thermal Management Improve Resilience
Meeting the Energy Grid’s Rising Demands
The energy grid is facing unprecedented pressure. In 2023, U.S. utilities projected a 4.7% growth in electricity demand over the next five years—nearly double previous estimates and significantly higher than the 0.5% annual increases seen in the past decade. This surge stems from expanding urban populations, the growing electrification of transportation, and an increasingly digital economy. Data centers alone are now major contributors, consuming large amounts of power for computing and cooling.
At the same time, the grid must integrate renewable sources like solar and wind, which introduce variability and complexity due to their intermittent nature. To handle these challenges, utilities are turning to advanced power electronics and energy grid storage systems.
The Power Electronics Advantage
Power electronics are essential for converting, regulating, and distributing electricity efficiently. Devices like inverters and converters enable seamless transitions between energy sources and the grid, especially when integrating DC power from solar panels or batteries into AC-based infrastructure.
These systems also support real-time grid balancing, regulate voltage and frequency, and respond rapidly to faults. Without them, reliable operation in a mixed-source, high-demand environment would be nearly impossible.
Smart Grids and Energy Storage
Power electronics are foundational to the modern smart grid—an upgraded energy system that uses digital communication and automation to improve reliability, reduce costs, and support sustainable energy integration. They help manage distributed generation, quickly respond to changes in demand, and ensure stable operation.
Meanwhile, energy storage technologies work hand-in-hand with power electronics to stabilize the grid. Batteries store excess power during low demand and discharge it when usage spikes. This is critical for smoothing out the variability of renewables and ensuring power continuity during outages.
Battery Energy Storage Systems (BESS) also serve as advanced Uninterruptible Power Supplies (UPS) for critical infrastructure. In data centers, hospitals, and emergency services, BESS provides instant power during grid interruptions, acting as a vital transition mechanism until traditional backups like diesel generators come online. This not only ensures continuous operation but also reduces generator run-time, lowers emissions, and enhances overall power reliability.

Why More Power Electronics Isn’t a Silver Bullet
While power electronics are transformative, scaling them across the grid is not a one-size-fits-all solution. Each grid segment has unique needs, infrastructure limitations, and cost considerations. Strategic planning, system compatibility, and targeted deployment are key to maximizing effectiveness and long-term reliability.
Thermal Management: A Silent Workhorse
High-performance power electronics generate considerable heat. Without proper thermal management, heat buildup can reduce system efficiency, shorten lifespan, and increase the risk of failure—especially during peak demand.
Today’s power electronics face the dual thermal challenges of increasing power levels and shrinking device packaging—a trend expected to continue well into the future. Traditional liquid cooling solutions are reaching their limits, often requiring higher flow rates and lower fluid temperatures to meet escalating thermal demands.
ACT addresses these challenges with advanced two-phase (vapor/liquid) cooling solutions that deliver a step change in performance, enabling:
- Significantly lower flow rates
- Higher heat flux potential for compact designs
- Reduced pumping power requirements, which can lead to up to 85% improvement in parasitic power efficiency compared to single-phase liquid cooling
- Improved temperature uniformity across components
- Intrinsic electrical isolation and enhanced safety
These advantages expand the cooling envelop and remove constraints on the development of power-dense, high-performance electronics. Our technologies include:
- Passive systems like heat pipes and Loop Thermosyphons, which use vapor/liquid phase change to move heat silently and efficiently without the need for pumps—acting as thermal “superconductors.”
- Active systems like Pumped Two-Phase cooling, which circulate system-specific working fluids (typically refrigerants) to absorb and transport heat away from dense, high-power components.
Both approaches boost system performance and reliability while minimizing downtime and maintenance.

Real-World Example: Megawatt-Scale Cooling Success
ACT recently partnered with a customer developing a megawatt-scale AC-to-DC power electronics platform. The system included multiple electrical cabinets, each with specific thermal requirements.
- For flat-mounted components, ACT deployed evaporative cold plates that used a refrigerant-based working fluid to absorb up to 3.3 kW of heat per plate.
- For components incompatible with cold plates, we used evaporative air coolers.
- A centralized coolant distribution unit (CDU) managed the refrigerant, recirculating it across all cooling zones.
Crucially, this system also provided excellent electrical isolation for three 13.8 kV AC phases, thanks to the use of dielectric fluids and isolated mounting techniques. The result? A compact, reliable, and efficient solution tailored to high-performance electronics.
Efficiency, Profitability, and Sustainability
Thermal management isn’t just about safety—it’s about economics and environmental impact. Well-cooled systems last longer, perform more reliably, and require less frequent maintenance. That means fewer interruptions, lower operational costs, and a stronger return on investment.
Efficient power electronics also reduce energy waste during conversion, which in turn lowers greenhouse gas emissions and supports global decarbonization goals. They are key enablers of a cleaner, smarter, and more resilient grid.
The Advantage of ACT
ACT engineers thermal management solutions that support today’s grid transformation. Whether it’s cooling electronics in grid energy storage, data centers, or utility-scale renewables, our passive and active systems are designed for peak performance, high-efficiency, and long-term reliability.
As electricity demand climbs and renewable integration expands, ACT’s existing and future technologies will be capable of meeting the resulting power electronics thermal challenges. Learn more about how ACT is strengthening the future of energy.