Get Smart: AI And The Energy Sector Revolution Posted on : Aug 31 - 2020

Artificial intelligence is about to trigger explosive changes in our lives, work, and leisure, but few understand what the technology can do beyond Amazon AMZN +2%’s Alexa or Apple AAPL +3.4%’s Siri. These are examples of virtual assistant or ‘weak AI’ technology — the most common example of AI application. But in the data-driven energy sector, sophisticated machine learning is paving the way for ‘strong AI’ to improve efficiency, forecasting, trading, and user accessibility.

Electricity Trading

Electricity is a commodity that can be bought, sold, and traded in open markets. For these markets to function efficiently, massive amounts of data — from weather forecasting to grid demand/supply balance — must be constantly analyzed by power sellers, buyers, and brokers. Those best positioned to understand the data have a competitive advantage in the marketplace.

In 2018, IBM IBM’s DeepMind began applying machine learning algorithms to 700 MW of Google GOOGL -0.5%’s wind power capacity in central US which is enough to power a medium-sized city. Utilizing a neural network that tapped into weather forecasts and historical turbine data, it could reasonably predict wind power output 36 hours in advance. In less than one year, DeepMind’s machine learning algorithms increased the value of their wind energy by roughly 20%, compared to baseline scenarios.

Intelligent Power Consumption

Nearly half of power users in the United States have electrical smart meters, providing data about personal energy consumption to enable informed consumer self-regulation of energy usage. New AI-fueled smart meters and smart home solutions are not yet widespread but represent a potential boon to end-user efficiency gains. These energy monitoring devices communicate with other household devices, saving owners money by reducing energy waste. Such examples would be these devices controlling air conditioning, advising the charging of electric cars during hours with lower electric costs, controlling lighting, and managing appliances. View More