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Utilities & Power AI Strategy: opportunities, use cases & the operating model
For utilities, AI value is in grid balancing, outage prediction, and orchestrating distributed energy resources, keeping the network reliable as load, EVs, and rooftop solar make flows bidirectional.
Where AI creates value
Grid balancing — Load and generation forecasting for stability
Outage prediction — Fault and storm-damage anticipation and response
DER orchestration — Coordinating solar, storage, EV flexibility
Asset health — Transformer and line condition monitoring
Vegetation and wildfire — Risk mapping from satellite and LiDAR
Demand response — Flexible load dispatch to shave peaks
Top AI use cases
- Distribution load forecasting to balance the grid with rising EV demand
- Predictive outage and fault detection to speed restoration crews
- DER and virtual power plant orchestration across residential assets
- Vegetation and wildfire risk mapping from satellite and LiDAR imagery
- Transformer and asset health scoring to prioritise capital replacement
What has to change (operating model)
- Regulatory approval of AI-informed capital and reliability spending plans
- Real-time grid control governance as automation touches critical infrastructure
- Data platforms integrating smart-meter, SCADA, and DER telemetry
- Cyber-physical security standards for AI in operational grid systems
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