Roland Berger, a consultancy firm, says, the adoption of AI by utilities are heralding a new age of leaner, more efficient distribution and load bearing systems.
According to Roland Berger, a consultancy firm, if utilities were to adopt artificial intelligence, which could predict demand swings on the usage of power, for example, they could significantly boost their efficiency.
European utilities could easily achieve 5% efficiency gains, over the next five years, said Roland Berger while adding that less than a quarter of EU’s firms had a strategy in place for this.
Power firms across Europe, which previously were dependent on gas or coal fired power plants are now having to adopt to renewable power sources, are facing a profit squeeze since electricity prices have dropped.
“Companies need to respond to this change and come up with new business models,” said Torsten Henzelmann, a partner at Roland Berger. “To do that they need new technologies such as artificial intelligence.”
With the rise of renewable energy sources, including wind and solar, that typically have intermittent supply, there is a growing need for intelligent IT systems to balance the demand and supply loads swings with companies racing to meet their new energy and carbon emission targets, said Roland Berger.
Already European utilities have sunk in tens of billions of euros into their grid thus sparking a wave of merger and acquisition (M&A) deals, as well as collaborations, in the energy sector, with AI being one area of focus.
Already, E.ON, one of Germany’s biggest energy companies, has struck a deal with Sight Machine, a San Francisco-based start-up, to use machine learning to improve manufacturing processes and lower energy costs.