The International Energy Agency (IEA) recently hosted a significant gathering focused on the intersection of artificial intelligence (AI) and the energy sector, resulting in robust discussions that underline the growing influence and challenges posed by these emerging technologies. The event took place as a follow-up to the IEA's inaugural global round table and gathered approximately 500 industry stakeholders to explore the current trends and future implications of AI in energy. Reports indicate that 2024 is poised to be a pivotal year for AI within the energy sector, with trends expected to extend into 2025 and potentially beyond.
One of the principal themes discussed was the dual nature of AI technologies, particularly as they relate to electricity generation and consumption. IEA Executive Director Fatih Birol remarked, “There is no AI without energy – specifically electricity,” emphasising the critical connection between these two fields. This integration underscores the urgency for both sectors to adapt and innovate in tandem to manage the contributions and demands placed on energy systems.
Among the issues highlighted during the discussions were the persistent threats to energy security and affordability, the slow progression towards achieving energy access goals, escalating greenhouse gas emissions, and the inadequate pace of clean energy innovation. Experts acknowledged that while AI has the potential to catalyse solutions to these ongoing challenges, this necessitates a deeper understanding of its applications and implications. Participants suggested that AI could significantly enhance clean technologies, mentioning specific advancements such as AI-enabled innovations in battery technology and materials science.
The forum also spotlighted current applications of AI within the energy sector, ranging from forecasting electricity demand to enhancing the management of power flows across networks. Additionally, participants discussed the use of AI in automated demand response systems, which play a crucial role in optimizing energy use and improving overall safety and productivity in energy supply chains.
While the potential benefits of AI in energy management are substantial, concerns regarding energy consumption, particularly related to data centres, were also raised. Although these facilities currently constitute approximately 1% of global electricity demand, projections indicate a notable increase in demand correlating with the expanding footprint of AI applications. The concentration of data centres in specific locations, such as Ireland, is raising alarms among stakeholders regarding the alignment of energy infrastructure development with planning and operational timelines.
To address the increasing energy needs of data centres sustainably, the IEA expressed its intention to establish an observatory dedicated to AI and data centres. This initiative aims to better understand their energy footprints and guide appropriate policies to manage their demands.
In conclusion, Birol outlined six guiding principles to inform the integration of energy and AI, stressing the need for rapid improvements in sustainable energy delivery for AI infrastructures and the necessity of transparency in data sharing for informed decision-making. He articulated the importance of inclusive methodologies in deploying AI to prevent exacerbating existing digital and energy divides and the critical role of supportive policies in achieving secure, affordable, and equitable energy transitions.
The IEA anticipates releasing a special report on energy and AI in the spring of 2025. Furthermore, the agency will collaborate with Canada on developing strategic approaches to AI and energy, which will be formalised during the country's G7 presidency in 2025. Ongoing discussions with other nations, including France and Korea, are also planned to ensure continued advancement in AI applications within the energy sector.
Source: Noah Wire Services