Fabio Lauria

Artificial intelligence in the energy sector: new solutions for production and distribution

April 18, 2025
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AI changes energy management through optimization of renewables and smart grids. Algorithms help power companies to:

  • Reducing CO2 emissions
  • Improving the reliability of renewables
  • Predicting demand
  • Preventing interruptions
  • Optimize distribution

Impact

  1. Power generation:

Predictive algorithms improve reliability of renewables by anticipating weather conditions for solar and wind. Predictive maintenance reduces downtime and operating costs for power plants.

  1. Energy consumption:

Users can shift consumption to off-peak hours, reducing Costs and load on the grid.Smart home systems automatically adjust thermostats, Lighting and appliances

  1. Network management

Modern digital technologies are revolutionizing the way we manage energy infrastructure. In particular, artificial intelligence is proving to be an invaluable tool for electric distribution companies. These advanced systems continuously analyze huge amounts of data from sensors distributed throughout the grid, from transmission lines to transformer stations.

Thanks to sophisticated machine learning algorithms, it is now possible to identify potential problems before they cause service disruptions. This preventive approach, known as predictive maintenance, is producing remarkable results: several companies in the industry have seen a dramatic decrease in disruptions, resulting in a significant improvement in the quality of service provided to citizens and businesses.

The impact of this technological transformation goes beyond simply reducing outages. The ability to predict and prevent problems enables more efficient management of resources, better planning of interventions, and, ultimately, more reliable and sustainable electric service for the entire community.

Examples of impact:

  • Siemens Energy: -30% downtime
  • General Electric: $1 billion annual savings
  • Iberdrola: -25% energy waste in renewables

Applications tested:

  • Shell and BP: operational optimization and emissions reduction
  • Tesla: energy storage and clean solutions
  • Duke Energy and National Grid: grid modernization

AI improves energy management by making it:

  • More efficient
  • More reliable
  • More sustainable
  • Cheaper

These developments support the transition to a more sustainable energy system through technological solutions that are already applicable in the field.

Conclusions

Artificial intelligence is revolutionizing the energy sector, offering innovative solutions to optimize energy production, distribution and consumption. However, AI itself has its own energy impact. The computing centers required to train and run AI models require significant amounts of energy, with estimates suggesting consumption can reach several hundred kilowatt hours for a single training of complex models.

To maximize the net benefit of AI in the energy sector, companies are taking a comprehensive approach. On the one hand, using more efficient architectures and specialized hardware. On the other, by powering data centers with renewable energy, creating a virtuous cycle in which AI helps better manage renewable sources that, in turn, power AI systems.

Innovations in computational efficiency and data center cooling technologies, along with the use of renewable energy or, where permitted, atomic energy, will be crucial to ensuring that AI remains a sustainable tool for the energy transition.

The long-term success of this approach will depend on its ability to balance the operational benefits of the system with its own energy sustainability, thus contributing to a truly clean and efficient future. I will write something even more specific on the topic later.

Fabio Lauria

CEO & Founder | Electe

CEO of Electe, I help SMEs make data-driven decisions. I write about artificial intelligence in business.

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