Harnessing the power of AI for transformative advancements in energy expansion

Integrating new energy technologies presents challenges, but AI can enhance grid reliability and efficiency. SVP Mark Kelly explains how to adapt strategies and policies that are crucial for sustainability and a flexible energy future as consumption continues to rise.

Navigating the imperatives and challenges of the energy expansion

As we continue to navigate the energy transition, the convergence of technology and electrification is reshaping how we power our lives and the future of energy. A transformation that is driven by the necessities of sustainability and resilience, especially in the wake of extreme weather and evolving societal expectations.

Advancements in renewables are being complemented by improvements in energy storage systems, smart grids and electric vehicles. But connecting these new technologies into existing power grids still presents significant challenges.

With energy consumption projected to increase by up to 57% by the end of 2050 (Source: International Energy Outlook 2023 - U.S. Energy Information Administration), the way our corporate strategies and government policies operate must be adapted to ensure a stable, more flexible energy future. The pressing question remains: can we adapt quickly enough to avoid grid exhaustion?

The transformative role of AI in the energy sector

No technology in recent history has captured the world’s attention more than artificial intelligence (AI). The real-world applications of large language models and generative AI are revolutionizing the energy sector by enhancing grid reliability and energy efficiency.

So, in short… the answer is yes - we can adapt. And leverage technologies like AI and its ability to process massive amounts of data in real-time to help. From predictive maintenance enabling the awareness to predict and address equipment issues before failures to energy storage optimization that can help us detect excess energy and store it during low-demand periods. AI-driven innovations highlight the transformative potential of these technologies.

So, the answer was yes, we can adapt - but can we do it quickly enough? Because there is one factor above all others that has the capacity to offset any gains afforded by AI—it requires more energy than our grid can produce.

The energy sector can learn valuable lessons from how the telecom industry evolved with mobile technology. Just as telecom moved from simple, one-way communication to complex, interactive networks, the power grid is transforming into a dynamic system. Let's dive deeper into 3 key technologies that will shape the future of our power systems:

• Grid-Edge Intelligence and Distributed Energy Resource Management (DERMS). The modern grid is no longer one-way. With rooftop solar, EVs, and battery systems proliferating, AI is now essential to orchestrate the grid edge. DERMS platforms powered by AI forecast demand, predict solar and wind variability, and autonomously balance supply and load across thousands of distributed assets.

Without AI, the complexity and speed required to manage these resources in real-time would be unmanageable. AI transforms DERMS from passive monitoring tools into dynamic, self-optimizing grid controllers keeping power flowing smoothly even as renewables surge.

• Next up: ageing infrastructure. It’s prone to failure, but AI provides the foresight the grid needs. By analyzing high-frequency sensor data, waveforms, and even drone imagery, AI can detect early signs of stress in transformers, lines, and switchgear. This enables predictive, rather than reactive, maintenance—cutting costs, improving safety, and avoiding unplanned outages.

AI-powered digital twins and anomaly detection models turn maintenance from guesswork into science, extending the life of critical assets and ensuring reliability under increasing load.

• Lastly, semiconductor-based power electronics. Traditional transformers are static, often blind to the dynamics of modern power flow. AI-enabled, semiconductor-based power electronics, like solid-state transformers and smart inverters provide the speed, control, and intelligence needed to manage variable renewables and bi-directional flows. These devices sense, interpret, and act in milliseconds, with AI determining how to stabilize voltage, balance load, or reroute power on the fly.

AI gives these systems autonomy and foresight, turning hardware into intelligent grid agents and enabling local resilience without central oversight.

Understanding the roles of energy assets both before and after they reach the meter is critical for keeping the grid stable.

Investing in a sustainable and resilient future

In the next five years, data centers alone will require 10x more power for AI computing necessitating that paradigm shift in how we produce, manage, and distribute energy responsibly (Bloom Energy).

Tech giants like Google and Microsoft have already reported significant increases in their carbon emissions to keep up with AI generation. As data centers evolve to become more strategic assets in the energy sector, optimizing energy use and integrating renewables will be paramount. The tension between legacy grids and renewable energy sources will demand advanced grid planning and upgrades.

Looking ahead, emerging technologies such as advanced energy storage and smart grids will significantly impact the energy sector in the next decade. The business case for sustainability is compelling, with renewable energy and energy efficiency measures offering long-term financial viability. However, regulatory reforms must keep pace with technological advancements to ensure safety and equity. Public-private partnerships and workforce readiness are critical in driving the energy transition, ensuring we have the skills and resources needed for a sustainable energy future.

Why it matters: Business can successfully manage the energy transition and still focus on the bottom line. By leveraging the right technologies and investing in move-the-needle innovations, we can build more resilient and flexible energy systems. Embracing these opportunities and tackling the challenges head-on will ensure a more sustainable and profitable future.

- Mark Kelly – SVP, Global Intelligent Power Technologies, Eaton

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