Emerging technology such as artificial intelligence is seeping into different markets and energy sector is gradually adopting it as well.
FREMONT, CA: “Data is the new oil” – a statement said by Clive Humby, a mathematician, is proving to be true in the energy landscape as well. Data is becoming indispensable for the energy markets to generate, sell, and buy power. Start-ups, renewable companies, and major utility giants are turning to Artificial Intelligence (AI) to transform data into insights that can improve productivity and cost cutting. The use of AI in energy operations prevalent in the back office is slowly making its move to the front office that generates useful information. In combination with technologies such as big data, cloud, and machine learning, AI can create smarter and more streamlined energy operations.
AI is a sophisticated technology that helps forecast load, prices, cloud cover, wind speeds, and other weather metrics with the right machine learning and AI technology. Upon monitoring these trends, the algorithm learns and provides strategic, fast, and analytical decisions based on history. Based on these metrics, trading strategies can be developed in the front office while the automation and the learning of typical inconsistencies is cost saver and money generator in the back office.
In many instances, companies struggle when an energy trader leaves the team. However, with the right AI technology, transitioning between traders and experience is more efficient. Deploying AI applications to streamline front and back applications, energy companies understand evolving customer needs while making automatic recommendations.
Energy storage greatly helps solve the energy crisis, but the complexity of the situation makes it difficult for a single technology to resolve the issue. Pairing renewable energy with AI-driven storage could be the paradigm shift that the energy sector requires.
In today’s volatile market, the complexities in energy trade and management, especially for renewable, requires a robust, end-to-end integration to better forecast and predict intermittent resources. Through predictive analytics and correlations through AI and machine learning, connecting the back office to the front office becomes simpler. AI is becoming invaluable with the ability to boost efficiencies across utilities to launch new business and service models. Progressive energy traders are levering this emerging technology to get an edge over their competitors who are performing manually. Thus, it is no longer plausible to ignore the power of AI.
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