Artificial intelligence has become an important part of almost every industry, and the energy sector is no exception. At the same time, AI depends heavily on electricity to operate. Training and running AI models requires large data centres that use substantial amounts of power. This creates a close connection between AI and energy. While the growing use of AI is increasing electricity demand, the technology also has the potential to change how energy is produced, distributed and consumed, helping create a more reliable, affordable and sustainable power system.
Ratul Puri, Chairman of Hindustan Power, notes that AI can play an important role in making energy systems more efficient and stable in the years ahead. Understanding the relationship between AI and electricity will therefore be important to making effective use of the technology while supporting India's journey towards its net-zero target of 2070 or earlier.
The rapid growth of AI, cloud computing and digital services has resulted in significant investment in data centres. An AI-focused data centre can use as much electricity as around 100,000 homes, while some of the largest facilities being developed today could require around 20 times that amount. As demand from data centres continues to rise, governments and energy companies will need to look at how electricity can be generated, distributed and managed more efficiently.
At the same time, AI can improve the way energy systems operate. It can support more efficient electricity management, improve grid performance and help companies optimise areas such as exploration, production, safety and maintenance. Digital solutions can also help make better use of existing transmission capacity without always requiring the construction of new lines. According to Ratul Puri, applying these technologies across energy systems could contribute to significant reductions in emissions.
Achieving these benefits will require continued investment in grid infrastructure and greater flexibility across the electricity ecosystem. Energy companies will also need to develop the digital capabilities of their workforce. As Ratul Puri points out, technology and skilled manpower need to develop together if the energy sector is to become better prepared for future requirements.
AI can also contribute to innovation in clean energy. Scientists can use AI to speed up the discovery and testing of new solar photovoltaic materials, carbon capture molecules and battery chemistries. However, moving these discoveries from research to commercially viable solutions will require suitable policies and support that can encourage faster commercialisation.
Several challenges will also need to be addressed. These include a shortage of AI-related skills within the energy sector and the rising electricity requirements of data centres. Their electricity consumption is expected to more than double to approximately 945 TWh by 2030. At the same time, increasingly complex and decentralised electricity grids will require more effective ways to balance and manage power networks.
AI can help address some of these challenges through improved forecasting, greater integration of variable renewable energy and reduced curtailment. AI-based fault detection, remote sensors and digital grid management can further improve the use of transmission capacity and help reduce the duration of outages.
The long-term impact of AI on emissions and the climate will depend on how these applications are implemented, the strength of the business cases behind them, the incentives available and how quickly regulations adapt. Addressing these factors can help countries and companies use energy resources more effectively while continuing to make progress towards their net-zero goals.
About Ratul Puri:-
Ratul Puri is the Chairman of Hindustan Power, an integrated power generation company with a strong presence in renewable and transitional energy generation. Over the years, Ratul Puri has been involved in the development of large-scale energy infrastructure projects that support India’s growing power requirements and its transition toward cleaner energy sources.
For more information visit:-
https://ratulpuri.in/
