AI boosts renewable energy predicting and grid planning

Smaller grids are seen to lead AI adoption.

The integration of artificial intelligence (AI) in renewable generation forecasting and grid planning are amongst those that are gaining traction within the cleantech industry, according to S&P Global Commodity Insights.

“With its unparalleled ability to process vast amounts of data more quickly and accurately than humans, AI is emerging as a critical tool in generating novel insights that enhance energy management,” S&P said in its Top Cleantech Trends for 2025 report.

The rising adoption of intermittent renewable energy sources, such as wind and solar, calls for the need for precise generation forecasts. AI-powered trading applications are gaining traction, mitigating risks from huge forecast discrepancies by up to 700%.

AI is also being used to develop advanced weather and generation forecasting tools for accurate price predictions and automated trading strategies.

“In terms of grid planning, the growing share of renewables poses challenges to grid stability but simultaneously opens avenues for enhanced digitalization and AI utilization,” the report read.

“Despite hurdles such as the complexity of transmission systems and data fragmentation, initial initiatives utilising AI for grid planning are emerging,” it added.

S&P expects smaller distribution systems to be the first to embrace technologies such as AI for broader implementation across larger and more complex transmission systems in the future.