Is Europe’s Energy System Ready for AI?
How AI can unlock efficiency, resilience, and sustainability in Europe’s evolving energy landscape.
In November 2022 with the launch of ChatGPT, Artificial Intelligence (AI) became available to the broader public, sparking global debate about the risks and opportunities of this new technology. Governments around the world began competing for technological leadership and Europe has joined the debate in February this year by launching its AI strategy. As Europe works to boost its global competitiveness by addressing high energy prices while becoming climate-neutral, key questions arise: What role can AI play in the energy sector – and is Europe ready to embrace it?
AI offers great potential for Europe’s energy system. According to the European Commission, AI and generative AI are revolutionising Europe’s energy systems by optimising the integration of renewables and enhancing grid management. Existing use cases demonstrate AI’s value in better forecasting, planning, and operating Europe’s electricity infrastructure.
AI offers great potential for Europe’s energy system. Existing use cases demonstrate AI’s value in better forecasting, planning, and operation of Europe’s electricity infrastructure.
When we talk about AI in this context, we refer specifically to software that can learn, interpret the meaning of input data, and solve and adapt to complex tasks. In the energy sector, this means industrial-grade AI, different from consumer AI, which focuses on optimising, controlling, and predicting outcomes within complex physical systems and uses data from machines, sensors, and industrial processes to provide output.
To function properly, AI needs data. Only with reliable, robust, secure, and trustworthy data can it function effectively in the energy sector. Data is at the core of AI as it is required to train AI systems, so access to high-quality and reliable data is crucial. Moreover, AI needs guidelines and infrastructure for the secure exchange of information between organisations, which can improve training datasets and AI performance.
AI also requires massive computing capacity – and therefore energy. AI can only operate efficiently if there is a sufficient supply of electricity and grid capacity. Therefore, grid modernisation is an absolute prerequisite.
While great expectations for AI abound in the energy sector, Europe can only realise them by taking decisive action in four areas.
First, Europe must upgrade the existing grid infrastructure with more digitalisation, not only to enable the energy transition and increase grid transparency, but also to provide data centres with sufficient energy. This means investments in both physical and digital assets. While investments are underway, one of the hurdles for greater and faster uptake of digitalisation is European and national investment regulations, that are geared towards capital investments and not always conducive to stimulating investments in software, which are considered operational expenditures.
Second, Europe needs to improve access to high-quality, trusted data for actors in the energy network. Despite the EU Data Act, important hurdles still exist for the smooth supply of data that can be used by industrial-grade AI.
Third, a more harmonised implementation of EU regulations across Member States is essential. Policy coherence must be strengthened both across sectors and between countries to reduce regulatory overlap and prevent duplication.
Finally, Europe must develop skills and adopt an AI mindset, so that we build the knowledge and expertise on how to utilise AI for a stronger and more efficient energy system.
Without these four key pillars, the potential of AI for Europe’s electricity system will remain an unfulfilled ambition. The good news is that all these pillars are under construction. It is now time to ensure the implementation of fit-for-purpose regulations and to step up the work on the ground.