Transforming Energy: The Role of AI

The energy sector is undergoing a remarkable transformation, driven by technological advancements and evolving market dynamics. As Dr Darius Milčius from Vytautas Magnus University (VMU) and a member of the SustAInLivWork project states, “New technologies, businesses, and ownership models are reshaping how energy is produced, distributed, and consumed.”

This transformation reflects a significant shift from the traditional energy landscape dominated by state-owned monopolies to a more decentralised and competitive market.

Historically, state-owned energy companies held a monopoly over the generation, transportation, and supply of energy. “The belief was that monopolies were necessary for efficiency and that government ownership was the best way to prevent abuse of power and ensure reliable public services,” Milčius explains.

However, the rise of renewable energy sources, such as wind, solar, and wave power, has introduced a new player into the energy landscape: the prosumer.

The Prosumer Phenomenon

“A prosumer is both a consumer and a producer of electricity,” Milčius notes. This dual role empowers individuals not only to utilise energy but also to generate it themselves, often feeding excess power back into the grid. This shift has disrupted the old model, leading to a more decentralised system where the generation, transmission, and supply of energy are separated, fostering increased competition and innovation.

Among the various renewable technologies, solar photovoltaic power stands out, especially for domestic and small industrial applications. It is essential in transforming traditional energy paradigms into prosumer-based systems. However, this technology faces numerous challenges.

“Unstable generation during the day, absence of generation at night, shadowing from nearby buildings, and seasonal dependence make the transition complex,” Milčius emphasises.

Consequently, the need for effective energy storage technologies and solutions is critical. Currently, several options exist, such as net-metering systems, where the national grid acts as a “virtual” battery, net billing for excess electricity purchased by grid operators, and physical energy storage systems including batteries, hydrogen energy solutions, flywheels, and compressed air systems.

“Each of these technologies has its own benefits and challenges,” Milčius elaborates. For instance, net metering is particularly attractive to users due to its simplicity and cost-effectiveness compared to net billing and battery storage. On the other hand, physical storage technologies, whether they focus on a single technology like batteries or combinations of batteries, hydrogen, and supercapacitors, provide the most independence from the grid and security of supply. Nevertheless, high costs and long payback periods often hinder widespread adoption.

Innovative Approach: Energy Islands

An innovative approach to addressing these challenges is the development of energy islands – concepts that utilise artificial or natural islands as hubs for generating, storing, and distributing renewable energy.

“These islands, typically located offshore, harness wind, solar, or wave energy to produce electricity while storing excess energy generated during peak production periods,” Milčius explains. This method not only helps balance supply and demand but also ensures a reliable energy supply across varying times and seasons.

Milčius highlights that energy islands can collect energy from multiple sources, such as wind farms, solar arrays, and wave energy converters, efficiently distributing it to the mainland.

However, building energy islands is not without its challenges; high infrastructure costs, potential negative impacts on marine ecosystems, and the need for international agreements for seamless energy trade and grid interconnection must be addressed.

Harnessing AI for Smarter, Self-Sufficient Energy Islands

Amidst these developments, Artificial Intelligence (AI) technologies are emerging as powerful tools to enhance the creation, operation, and efficiency of energy islands. “AI can significantly contribute to making energy islands more self-sufficient and less dependent on external energy sources,” asserts Milčius.

AI algorithms can predict renewable energy production by analysing weather data like wind speeds and solar irradiance, helping island operators optimise energy generation. AI also monitors wind turbines and solar panels, detecting issues and enhancing efficiency by adjusting solar panel angles or turbine blades in real time. According to Milčius, AI can autonomously manage energy generation, storage, and Power-to-X systems, reducing costs and human involvement. Additionally, AI optimises battery performance by adjusting to different chemistries and predicting future energy needs based on past demand, ensuring energy islands stay self-sufficient during peak periods.

In the context of hydrogen technologies, maintaining a stable energy supply at approximately 80% load is essential. “AI can help predict working windows and manage transitions between operational modes, ensuring the longevity of electrolyser cells,” he notes, emphasising the potential for AI to positively impact both capital and operational expenditures in hydrogen energy technologies.

The Future of AI in Energy Management

On a broader scale, AI can enhance the reliability of the entire energy grid by detecting faults or issues in generation, transmission, and storage systems before they escalate into failures.

“Predictive maintenance enabled by AI can reduce downtime, minimise costly repairs, and ensure a continuous energy supply,” Milčius affirms. Additionally, AI solutions can bolster cybersecurity by autonomously managing potential threats and identifying patterns that indicate vulnerabilities or attacks.

In emergencies or unexpected disruptions, AI can make autonomous decisions to maintain system operations, rerouting power, managing loads, or activating storage as necessary. Looking ahead, the digitalisation of green energy production, transmission, and distribution promises to revolutionise the energy landscape. Milčius envisions the emergence of an Electricity Internet, where a highly interconnected and digitalised electricity grid utilises advanced technologies like AI, the Internet of Things, and Big Data to optimise energy use efficiently.

“Much like the internet connects and manages information across networks, the Electricity Internet will converge electricity infrastructure with the digital world,” he concludes, highlighting a future where the integration of AI and renewable energy reshapes our energy systems for the better.