How AI systems can help deliver on Europe’s energy savings goals

DISCLAIMER: All opinions in this column reflect the views of the author(s), not of Euractiv Media network.

Smart meter data can feed into AI systems that intelligently guide energy demand schedules, resulting in lower cost energy usage and avoidance of demand spikes and grid imbalances, write David Wallerstein and Philippe Benoit. [nullplus / Shutterstock]

Applying AI to energy efficiency techniques can deliver results quickly. One opportunity for Europe this winter is to better leverage the smart meters installed around the region with connected mobile applications that allow end-users to understand and manage their real-time energy usage, write David Wallerstein and Philippe Benoit.

David Wallerstein is the chief exploration officer of Tencent. Philippe Benoit was formerly division head for energy efficiency at the IEA and is currently director of research at Global Infrastructure Analytics and Sustainability 2050. Views expressed are in an individual capacity.

As Europe prepares for a challenging winter without gas from Russia, energy efficiency has emerged as a critical issue. Key institutions, including the European Union and the International Energy Agency, increasingly see energy efficiency as a vital way for Europe to protect its citizens and businesses this winter and beyond.

Energy efficiency generates multiple benefits, from reducing energy demand to reducing CO2 emissions. Under normal circumstances, it is essential. But in times such as these, it becomes imperative.

From drought in Brazil to earthquakes in New Zealand or Tsunami in Japan, energy efficiency has repeatedly been a solution to supply crises. It is not surprising that Europe is also looking to make more efficient use of its precious energy resources.

But few people are talking about the potentially transformative role that artificial intelligence (AI) could play in this endeavour.

How does AI work? AI systems use vast relevant data sources (e.g., demand patterns, weather patterns, energy behaviour patterns) to discover new strategies using sophisticated pattern recognition methods; humans mentally tap out with more and more data points.

AI systems find optimal strategies according to human-driven objectives.  Whether coordinating demand schedules for energy throughout an economy (e.g., when to charge your EV) or making an industrial process run more efficiently (i.e., running manufacturing plants), AI consistently shows that it can outperform human or static control systems.

AI can be embedded in software systems controlling energy production and delivery systems, using the most sophisticated intelligence available to make critical resource usage decisions.  Significant progress has been made in researching and developing AI systems.

For example, The Centre for IT Intelligent Energy Systems in Denmark has studied numerous AI applications that show massive efficiency impacts. In one study, AI could reduce the amount of energy used for wastewater treatment and the related greenhouse gas emissions, by roughly 40%, without sacrificing the targeted output.

Importantly, applying AI to energy efficiency techniques can deliver results quickly. One opportunity for Europe this winter is to better leverage the smart meters installed around the region with connected mobile applications that allow end-users to understand and manage their real-time energy usage.

In turn, smart meter data can feed into AI systems that intelligently guide energy demand schedules, resulting in lower-cost energy usage and avoidance of demand spikes and grid imbalances. This would complement the various pricing incentives, and other demand controls the EU is looking to implement.

Another opportunity is to encourage businesses and local governments to install AI-powered energy management systems better to manage space heating in buildings and other indoor spaces.

The scaling potential of this is massive. We know how quickly businesses can innovate with the right incentives. Within a few years, every home and every business could, through AI, contribute to making Europe more resilient and secure.

Importantly, AI can deliver results faster and at a larger scale than new LNG projects from abroad (that present their own security issues) or even utility renewables projects at home (which, e.g., require much land for production and transmission infrastructure).

To make this work, we need to unleash the creativity of innovators. AI innovation doesn’t require a lot of capital. Instead, it can leverage the potent combination of computers and Europe’s human capital, technical skills, and imagination. Incumbent industries also have an essential role to play.

Not only are there meaningful efficiency opportunities across Europe’s manufacturing and utility sectors, but these companies also often have access to data critical to developing AI systems. Combining Europe’s power utilities and industry with innovators could produce significant impacts.

Financial support and a commitment to magnifying energy efficiency gains in the economy are essential. This can include credit lines for AI start-ups or tax benefits encouraging businesses to adopt AI technologies. AI requires access to data for system design and actual physical systems for testing and deployment. Translating AI concepts into action will require partnerships between utilities and start-ups.

Government can also help by creating the regulatory space for innovation, convening meetings to accelerate dialogue between industry/utilities and innovators, introducing fast-track tendering processes, and directing technical resources to AI creativity, deployment, and more.

The motor of innovation for the energy sector will often sit at the nexus between the private and public sectors. Finding opportunities for cooperation will be decisive. The AI Act, currently under negotiation by EU lawmakers, is part of this broader cooperative framework, as it seeks to apply its ‘trustworthy and ethical AI’ to this pressing crisis.

Applying AI solutions to improve Europe’s energy efficiency would supercharge its security, resilience, and climate action.  The benefits could be felt as early as the critical coming Winter if the initiative is taken quickly enough.

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