Lights On, Smarter Than Ever: AI in Energy!

Feb 183 min read

Updated: Feb 19

Lights On, Smarter Than Ever: AI in Energy!

The sector that powers the world – drawing energy from where?

Yes, you guessed it, from AI!

With artificial intelligence driving smarter grids, boosting efficiency, and enabling a greener future, the energy industry is evolving at lightning speed. It’s not just about powering homes and industries anymore – it’s about powering possibilities.

Let’s dive deeper into this article to uncover how AI is revolutionizing and powering the future of the energy sector.

Global AI in the energy sector - Market size (2024-2034)

A recent report by McKinsey & Company, 2023 was the year with the growing integration of AI in energy systems. It also highlights that 2024-25 will notice an increase in AI-driven renewable energy optimization, whereas 2030 is expected to play a vital role in reducing the energy sector emissions by 10% globally. A report by MarketsandMarkets suggests that by 2030 the compound annual growth rate will be 36.9%. According to Precedence Market Research, for the global expansion of AI in the energy sector:[1][2][3]

By 2024, the market grew to $15.45 billion.[1]
By 2025, AI's impact on the energy market
expanded to$18.10 billion.[1]
By 2026, the market size reached $21.22 billion.[1]
By 2027, the market was valued at
$24.87 billion.[1]
By 2028, it hit $29.14 billion.[1]

By 2029, the market size grew to $34.16 billion.[1]
By 2030, AI's influence in the energy sector expanded to $40.03 billion.[1]
By 2031, it reached $46.92 billion.[1]
By 2032, the market hit $54.99
billion.[1]
By 2033, AI in energy market size grew to $64.45 billion.[1]
By 2034, the global market is expected to reach $75.53 billion.[1]

Most impacted regions by AI in the energy sector

The insights and statistics on AI in the energy sector by Market.us give a brief overview of how the different regions have benefitted and tend to benefit from AI’s integration in the energy sector. The 5 major regions are North America, Latin America, Asia Pacific, Middle East Africa, and Europe.[4][1]

In the year 2023, North America

captured over 41% of the global

AI in energy market, valued at $1.5 billion. For the same year, Precedence Research

gives us a brief overview of AI in energy market share:[4]

Region 1 – Asia Pacific (41%)

Region 2 – North America (28%)

Region 3- Europe (24%)

Region 4- Latin America (7%)

Ways AI integration in the energy sector is leading to development

A recent report by McKinsey & Company discusses how AI has been impacting the world’s energy sector:[2]

Renewable Energy Forecasting: AI models improve wind and solar energy prediction accuracy by up to 25%.
Grid Optimization: Deployment of AI reduces energy transmission losses by up to 15%.
Maintenance and Monitoring: Predictive analytics lower maintenance costs by 20-30% for energy plants.
Energy Trading: AI-driven platforms increase efficiency in energy markets, with transaction speeds enhanced by 40%.
Energy Efficiency in Buildings: AI-based systems reduce energy consumption in commercial properties by up to 35%.
Carbon Capture: AI enhances efficiency in carbon capture technologies, increasing effectiveness by 10-15%.

How leading players in the energy sector are leveraging AI?

Many companies around the globe have been leveraging AI to grow in the energy sector. Let’s take a quick peek into how those energy giants are using Generative AI:

Company	Application
Siemens AG	Smart grid systems for real-time monitoring, energy forecasting, and improving renewable energy efficiency.[6]
Alpiq AG	Optimizing energy trading, managing Virtual Power Plants (VPPs), and predicting market trends with machine learning.[7]
AppOrchid Inc.	Generative AI for energy models, real-time asset monitoring, and outage prevention.[8]
General Electric (GE)	Predictive maintenance for turbines, enhancing grid stability with digital twins.[9]
Schneider Electric	AI solutions for smart buildings, load forecasting, and optimizing energy storage.[10]
Zen Robotics Ltd	AI-powered energy recovery and waste management with robotic systems for efficient recycling.[11]
Cisco	IoT solutions for smart grid communication, data management, and infrastructure resilience.[12]

IEA 50 in an article of commentaries published suggests AI and Energy as the “New Power Couple”. The integration of AI supports the evolution of smart grids by handling complex, multi-directional electricity flows from distributed generators, such as solar and wind, and grid-connected devices.[13]