Artificial Intelligence Will Revolutionize Energy, Earning Billions For Investors Posted on : Nov 30 - 2020

As the world is anticipating the end of the COVID-19 pandemic, energy consumption in industry and services is likely to grow. In the longer term, the developing world will increase its energy utilization, leading to growth of global primary energy demand by of 0.4% - 0.6% per year, or a 25% increase by 2050. According to scenarios calculated by energy giant Total SE, massive electrification of transportation will lead to decarbonization, and will require a rapid growth in renewables as a source of electricity.

This energy transformation will see an explosion of growth in Artificial Intelligence (AI) utilization in the sector – up 50% between 2020 and 2024 – to allow smart, 21st century grids to become the gold standard, gradually replacing the “dumb” grids laid down in the late 19th – early 20th century in Europe, North America, Japan, China and beyond.

The grid is a meta-system of generation facilities, be it nuclear, gas, coal, solar, wind, and hydro, connected by high voltage wire networks to transformers, and then to sub-stations and individual buildings, households, and apartments. Today, ambitious projects are in the works to provide electricity thousands of miles from the point of generation, for example, from Australia to Singapore via the ‘suncable.’ But transporting energy over long distances is a tricky, inefficient business. AI can help remedy that.

The leading trend in optimizing energy distribution and storage utilizing AI will become Energy Management Systems (EMS) connected to Internet of Things (IoT). The IoT allows for remote control of systems, consumption monitoring, data collection and analysis, and, with the help of AI, decision making: where to send energy, which generating capacity to switch on and off, how much energy to store, etc. New systems will utilizes smart sensors and meters to collect terabytes of information, and exploit massive cloud computing capacity and AI algorithms to process vast data into usable decisions. The market value of energy management systems is anticipated to exceed $45 billion by 2026. View More