10 ways AI can be used in utilities

The utilities industry has great potential to embrace artificial intelligence in

the coming years. Here are some examples:

 Load forecasting. Short-term load forecasts are vital for utilities.

Machine learning could be used to forecast supply and demand in real
time and optimize economic load dispatch. In the UK, Google’s
DeepMind has teamed up with National Grid to predict supply and
demand peaks and hopes to reduce national energy usage by 10%.

 Yield optimization. With AI, power providers can optimize generation

efficiency with real-time adjustments across their assets. GE Renewable
Energy’s “Digital Wind Farm” concept includes software that monitors
and optimizes the turbine as it runs, increasing energy production by up
to 20%.

 Predictive maintenance can be bolstered with drones for asset

inspections, replacing time intensive and risky manual inspections. The
drones are trained using deep learning algorithms to automatically
identify defects and predict failures without interrupting operations.

 Demand management can be automated and made smarter with

machine learning. In the UK, Upside Energy uses machine learning to
manage a portfolio of storage assets to support the grid, while Open
Energi controls devices with flexibility in their energy consumption to
shift demand in real time. It is estimated that machine learning could be
used to help unlock up to 6GW of demand-side flexibility which can be
shifted during the evening peak without affecting end users.
 Energy theft is a huge problem in some developing countries, such as
Brazil, where theft accounts for up to 40% of the electricity distributed.
AI can be used to detect usage patterns, payment history, and other
customer data that may signal irregular behavior.

On the retail side, AI can unleash market forces as well as transform the
user experience:

 Customer insights. Machine learning applications could allow utilities

to craft electricity prices that maximize their margins while minimizing
customer churn. AI could be used to create individual offers and services
to help utilities retain their most profitable customers.

 Energy trading. In this era of the prosumer generating their own

renewable energy and sending the excess back into the grid, platforms
are emerging to allow peer-to-peer trading between producers and
consumers. As supply and demand continuously fluctuate, AI can be
used to more quickly match producers with consumers. In the
Netherlands, Vandenbron connects consumers with renewable energy
providers.

 Virtual agents will revolutionize call centers, being able to respond to

consumer queries and provide instant assistance. They will be able to
automatically segment consumers based on service history and provide
early warning of bad debts. The development of natural language
technologies will eventually unlock the capacity to fully automate
customer service.
Consumers can also benefit from AI:

 Supplier selection. Machine learning can help customers choose their

energy retailer by learning about their preferences – such as energy
generation type, how much they’re willing to pay and their consumption
patterns – and then scanning the market for the most suitable offers.
Lumator, using software developed at Carnegie Mellon University, does
this and can also automatically make the switch without interrupting
supply.

 Consumption insights. Meter data can be analyzed to extract the

consumption profiles of a household’s hungriest appliances and see how
much each contributes to the energy bill. Bidgely takes this one step
further. Their universal disaggregation algorithm uses machine learning
and a database of over 50 billion meter readings from smart meters to
extend the appliance profiling to homes without smart meters.

AI opens a wide range of exciting possibilities for utilities but the changes
will not be simple. Early evidence suggests AI can deliver real value to
serious adopters, but current uptake outside of the tech sector remains low.
Few companies have deployed it at scale. The opportunities and rewards
are waiting for those willing to take the plunge.
https://www.digitalistmag.com/digital-economy/2018/05/17/10-ways-utility-
companies-can-use-artificial-intelligence-machine-learning-06167501

Load forecasting means predicting the future load with the help of
historical load data available. It is very important for the planning,
operation and control of power system.

It plays a vital role in the deregulated electric industry. A good forecast

reflects current and future trends in the power system. The accuracy of a
forecast is crucial to any electric utility. That is why, accurate models for
load forecasting are essential for the operation and planning of a utility
company. Since in power system the next day’s power generation must be
scheduled every day, day- ahead short- term load forecasting (STLF) is a
necessary daily task for power dispatch. Its accuracy affects the economic
operation and reliability of the system greatly . Short- term load forecasts
helps in estimating the load flows. This helps in making decisions that can
prevent overloading and the result deeply influence the power systems’
safety and economy .

The short- term forecasts are not only needed for control and
scheduling of power system but also used as inputs to load flow study or
contingency analysis i.e. for load management program. The short term
forecasting is also primarily used for the generation dispatch, capacitor
switching, feeder reconfiguration, voltage control, and automatic
generation control (AGC)

A little increase in the percentages of shortterm prediction accuracy may

bring many benefits in terms of economy and reliability of power system.
Therefore, precise short- term load forecasting not only enhances the
reliability of power supply but also increases economic benefits. The
research work in this area is still a challenge to the electrical engineering
scholars because of its high complexity. How to estimate the future load
with the historical data has remained a difficulty up to now, especially for
the load forecasting of holidays, days with extreme weather and other
anomalous days. But with the recent development of new mathematical
and artificial intelligence tools, it is potentially possible to improve the
forecasting results [7]. Load Forecasting can be performed using many
techniques such as similar day approach, various regression models, time
series, statistical methods, fuzzy logic, artificial neural networks, expert
systems, etc. But application of artificial neural network in the areas of
forecasting has made it possible to overcome the limitations of the other
methods mentioned above used for electrical load forecasting [8].

citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.444.9939&rep=rep1&t
ype=pdf

Energy theft: https://www.engadget.com/2017/09/25/companies-will-

use-ai-to-stamp-out-electricity-theft/

Switching to efficient artificial intelligence systems has already saved Google

a ton of money on its energy bills. And, it seems machine learning may also
pose monetary benefits (of a different kind) for electricity providers. With
power theft costing the industry roughly $96 billion in losses per year,
companies could start looking to AI to help identify pilferers.
A team from the University of Luxembourg has developed an algorithm that
sifts through electricity meter data to detect abnormal usage. They put the
system to work on info compiled from 3.6 million Brazilian households over
the course of five years. Specifically, they honed in on around 200 million
monthly readings made by professional meter readers. The algorithm
managed to reveal problem cases more than 65 percent of the time, which the
team believes is far better than other tools. Smart energy firm Choice
Technologies now intends to incorporate the AI into commercial software to
be used in Latin America, reports New Scientist.
Brazil is suffering from high rates of non-technical losses (which accounts for
energy theft, fraud, billing errors, and other instances of lost revenue). To
wrest control of the issue, the country's leading power utility company
Electrobras recently launched an anti-theft program, with backing from the
World Bank. The firm claims that 22 percent of all Brazilian energy
generated is siphoned off by thieves. But, Brazil isn't alone -- countries like
the UK estimate that similar activity results in losses of £440 million ($596
million) each year. Meanwhile, India's most populous state of Uttar Pradesh
lost around 31 percent of its total power generated in 2016.

AI and the SMART Grid

https://www.disruptordaily.com/ai-disrupting-
energy-industry/
AI will be able to improve awareness, efficiency and maintenance of a utility
grid’s system and utility assets such as wind and solar farms. Technology
giants such as GE and IBM are building prediction and maintenance AI
machines, for the electricity industry. AI can also be used to predict
Renewable Energy output based on historical climate data and weather
forecasts. By nature, renewable energy production is erratic and very much
depends on weather conditions. Using AI renewable energy plant asset
managers will be able to operate in the energy trading market more
efficiently and balance the grid better.

Another area for AI in the energy industry is infrastructure management.

Machine learning has already been operating in this space for some time
through alerts and alarms of grid failures. Using complex algorithms
utilities are able to better monitor the health of the electrical grid. Predict
points of failure and optimize maintenance better. AI can be used to make
SMART Grid operate more efficiently. Predict when batteries and other
crucial equipment will fail.
AI and the Demand Side of Energy
Another high-value application of AI in energy is around demand
management. These include energy efficiency, demand-side management,
and demand response. This steps outside the actual grid and impacts the
energy end user. Many startups are working on developing AI connected
home devices. That will manage better the supply/demand factor. Such as
automated “set it and forget it” solutions. Startup’s are building AI systems
that will make office buildings more comfortable and improve energy
efficiency. Using “Big Data” such as the number of humans occupying the
building and using climatic data etc.

Alphabet Nest’s is a US startup that uses AI to learn a home occupant’s

habits. Then control the home’s temperature by adjusting the cooling and
heating thermostat. The end result is a reduction in energy consumption.

Resulting in cost savings for the homeowner and reduction on greenhouse gas
emissions. Startup Comfy offers a similar type of service but is aimed more
at office buildings.

Where is AI and the Energy Industry Heading to?

Energy companies are still trying to figure out how best to apply AI to the
energy industry and investment has increased by tenfold in 2017. Mergers
and acquisitions of AI startups by energy companies have soared. From an
average value of around $500 million in the first quarter of 2017 to $3.5
billion in the second quarter. Utilities are leading the pack with AI startup
acquisitions. “Big Oil” companies are also starting to show an interest in how
AI can assist them in improving their business operations. Plus, assist humans
in their never-ending quest for new sources of clean energy. A major
advantage of AI is the ability to overlay it onto existing systems. That utilities
have built over decades and take advantage of that data collected over time.
The future of AI in the energy industry is bright and exciting. It’s set to
revolutionise the energy industry as we know it!