How AI Can Save the Energy Industry Billions

Today vs. Tomorrow—Global power systems in 2020 & 2050

Delivering clean energy intelligently

The efficient, cost-effective management of the clean power grids of the future—as shown above—requires a variety of innovations built on a broad spectrum of technologies, with artificial intelligence (AI) tech being key. As one of the top transformative technologies in the energy industry, AI is becoming essential to the predictive maintenance of clean power systems.

Forbes predicts that AI “could also have a significant role in the corporate energy market, enabling companies to reduce energy use and even supporting a decrease in emissions through managing a dynamic network of energy sources. This could support not just the smart management of cost, but also the carbon profile of energy sources.”¹

The most promising AI energy transition applications include²

• Renewable power generation and demand forecasting
• Grid operation and optimization
• Energy demand management
• Materials discovery and innovation

AI value in transitioning to clean energy

Artificial intelligence (AI) solutions can increase clean energy system efficiency, which means lower costs for energy providers who can pass those savings on to consumers. The savings are astronomical—in its September 2021 report, Harnessing Artificial Intelligence to Accelerate the Energy Transition, The World Economic Forum (WEF) states

"Considering the levels of investment required to deliver the energy transition, even if AI were to reduce the required investment or shave peak energy demand by a small percentage, this would drive billions of dollars in savings for the industry and consumers alike."

$1.3 trillion

Reduced investment into clean energy from 2020-2050 as AI increases energy efficiency and improves power demand forecasting and flexibility.³

$188 billion

**Additional global cost eliminated (2020-2050) **via AI that enables operators to keep transformers within optimal operating ranges. Scientists expect this intervention will help extend grid equipment and transformer lifetime in the face of “increased air temperatures due to climate change.⁴

6-13%

Power system cost increase without AI-controlled and balanced flexibility in 2040.⁵

In the same report, the WEF admits “the economic value of AI for [the transition to clean energy is] difficult to estimate.” So while the infographic above presents figures based on guesswork, these are very educated guesses.

U+ Top Energy Innovators

In addition to AI-based solution providers, we at U+ have been watching several forward-thinking tech companies that are innovating in the energy sector. Here are a few that are making breakthroughs in advancing clean energy, and delivering true value to global efforts to achieve net zero.

BluWave-ai (Canada)

Founded in 2017, BluWave-ai provides an AI-powered grid energy optimization platform that makes operational improvements for energy grids and renewable energy sources. The company’s solution “balances the cost, availability, and carbon footprint of [renewable and non-renewable energy sources] with energy demand in real time.” BluWave-ai aims to drive the transition to clean energy in such away that almost anyone, anywhere can produce it with the assistance of advanced computer technology.

Dexter Energy Services (The Netherlands)

Running on advanced AI and cloud technologies, Dexter Energy Services’ highly accurate, cost-effective forecasting and dispatching solution helps “reduce imbalance on the energy grid” and can save energy providers up to 35% in imbalance costs. The company’s mission is to help energy companies deliver cleaner, more affordable energy through the use of data analytics and AI-powered forecasting services.

Greenbird (Norway)

Greenbird offers utilities providers Utilihive, its out-of-the-box system integration platform, which “simplifies the complexity of Big Data Integration.” This enables utilities to manage their data more efficiently and effectively than traditional system integration solutions while accelerating their digital transformation initiatives. Greenbird’s flexible, domain-specific integration capabilities earned it the honor of being named a Gartner ‘Cool Vendor’ in 2018.

Stem (USA)

Pairing AI with energy storage, Stem helps companies automate energy cost savings while protecting them against potential losses that come with changing rates. They are the first public pure-play smart energy storage provider, operating and delivering battery storage solutions that maximize renewable energy generation. Stem’s Athena software helps reduce energy costs and “solve renewable intermittency across the world’s largest network of distributed energy storage systems”

Uplight (USA)

Uplight offers a software suite that provides utilities companies with granular data about how their customers are consuming energy, and proposes methods of lowering their base power demands. The company also runs a marketplace where consumers can “find rebates and deals on energy-efficient appliances and electric vehicles.

How U+ can help you digitize your energy company

The U+ Method can efficiently and effectively lead the development, implementation, and improvement of innovations in any sector, including energy. To date, we have used this method to bring 100+ products to market, creating over $1 billion in value for Fortune 1000 companies. Our success stories in the energy space include building a smart home app connected to smart energy meters and a virtual solar battery concept for mass-market consumers for Czech energy supplier E.ON.

Footnotes

• Felicia Jackson, Top Technologies Transforming Energy In 2021, Forbes, January 2021 ↩

• World Economic Forum, Harnessing Artificial Intelligence to Accelerate the Energy Transition, September 2021 ↩

• BloombergNEF, New Energy Outlook 2021 ↩

• Fant et al., Climate change impacts and costs to U.S. electricity transmission and distribution infrastructure, Energy, 15 March 2020, vol. 195. ↩

• BloombergNEF, BNEF Power Grid Long Term Outlook 2021 ↩