FRANKFURT: Utilities can increase their efficiency by using more artificial intelligence (AI) technology, such as software to predict demand swings in the power.
European utilities could achieve efficiency gains of the past five years using such technology, it said, adding that less than a quarter of firms had a strategy to do this.
Power firms across Europe, which have been depicted on coal or gas-fired power plants, are having to adapt to the expanding use of renewable power sources and facing a profit squeeze as wholesale electricity prices have fallen.
“Companies need to respond to this change and come up with new business models,” Torsten Henzelmann, partner at Roland Berger, said. “To do that they need new technologies such as artificial intelligence.”
The rise of renewables, such as solar and wind that provide intermittent supply, has, need for, intelligent,
Utilities have started ploughing of tens of billions of euros in investments into their grids, sparking a wave of merger and acquisition (M & A) deals and collaborations in the energy sector, with AI technology being one focus area.
E.ON, one of Germany's largest energy companies, struck a deal last week with San Francisco-based start-up Sight Machine to offer software that uses machine learning to improve manufacturing processes and lower energy costs.
AI could be used heating, lighting and other household appliances more efficiently, Roland Berger said. – Reuters