Electricity systems around the world are under pressure due to aging infrastructure, rising demand for electricity and the need to decarbonise energy supplies at pace. Artificial intelligence (AI) applications have potential to help address these pressures and increase overall energy security. For example, AI applications can reduce peak demand through demand response, improve the efficiency of wind farms and facilitate the integration of large numbers of electric vehicles into the power grid. However, the widespread deployment of AI applications could also come with heightened cybersecurity risks, the risk of unexplained or unexpected actions, or supplier dependency and vendor lock-in. The speed at which AI is developing means many of these opportunities and risks are not yet well understood.

The aim of this study was to provide insight into the state of AI applications for the power grid and the associated risks and opportunities. Researchers conducted a focused scan of the scientific literature to find examples of relevant AI applications in the United States, the European Union, China and the United Kingdom.

Key findings:

• Research points to the effectiveness of behind-the-meter AI applications, such as AI-driven load shifting, in strengthening energy security.
• There has been a significant acceleration in the development and deployment of AI, and this includes energy-related applications.
• There are several risks associated with deploying AI applications in the electricity system. Many of these risks are not unique to the electricity system but acquire additional gravity due to the critical nature of electricity systems.

Recommendations for policymakers:

• Policymakers will need to stay informed of these developments that impact AI and energy by sourcing information from different stakeholder groups through public hearings and reports.
• Policymakers will need to investigate whether existing regulatory frameworks adequately cover AI applications in energy and clarify or add to them where necessary.
• Policymakers must develop and maintain dialogue with a range of societal stakeholders.
• Policymakers need to be aware of the market dynamics of AI applications in the electricity system.