The adoption of clean energy technologies like electric vehicles, solar power, and smart grids will continue to accelerate through 2024 and beyond. Key factors driving this adoption include improving technologies, falling costs, supportive government policies, and increasing investments. Artificial intelligence (AI) in particular holds promise to enable the next wave of progress by optimising energy systems, with AI poised to transform how energy is produced, stored, and transmitted. AI tools for predictive analytics, Internet of Things (IoT) connectivity, and machine learning are gaining adoption to optimize smart grids. A recent report by industry analysts IDC predicts spending on AI in the utilities sector will continue to rise, as the business case for AI investment and for deployment of AI by utilities becomes clearer, showing the growing market pull. A range of cleantech technologies already brought to the market demonstrate AI’s potential:
- Grid4C has developed plug and play AI software which analyses billions of meter reads at the grid edge to deliver millions of daily predictions for energy providers, their customers, and the utility grid, helping to boost renewable energy integration by accurately forecasting production.
- AutoGrid's Virtual Power Plant software uses machine learning to aggregate distributed energy resources for demand response, and by controlling bundled solar and battery storage, can help reduce wholesale prices during peak demand.
- Google’s deployed its DeepMind AI to significantly reduce Google data centre energy usage for cooling, using AI to control systems and improve energy efficiency.
As these and other deployments scale, utilities can harness AI to reroute electricity, smooth voltage fluctuations, and enhance grid resilience at record speeds; however, so as to take full advantage, expect to see more announcements in 2024 of the medium and longer-term investments which will be needed to update and modernise aging grid infrastructures. We can expect to see investments will an increasing focus on expanding sensor density and data infrastructure along with the advanced software necessary to manage increasingly complex grids, networks, supply chains and markets.
Realising the maximum benefits from smart grids and renewables depends on overcoming some persistent challenges, however cyberattacks present a growing threat. As grids connect more devices and use more automation, vulnerabilities increase and we can expect to see grids come increasingly under attack from a range of bad actors. Regulatory policy also plays a major role in technology adoption patterns – for example, uncertainty around electric vehicle incentives has been shown to slow infrastructure buildout and adoption; hence, calls for governments and regulators to set out clear and consistent policy and guidance will continue, where we can expect to see more focus on renewable subsidies, carbon pricing and permitting processes.
Finally, with an election in the UK later this year, we might also see a Labour government elected and charged with carrying out manifesto promises for a ‘green and digital future’, perhaps having canvassed on the platform of a Green New Deal.
