Sunday, February 11, 2024

RAND: "The Promise and Peril of AI in the Power Grid"

From The RAND Corporation via The National Interest, January 25:

Can artificial intelligence in the energy sector ensure a reliable, clean power supply, or will it lead to frequent blackouts and public distrust?

Today, the power sector is on the cusp of a technological revolution; AI is poised to transform how electricity is produced and consumed. However, as with any new technology, its use comes with hidden risks and challenges that must be addressed.

Power grids are becoming rapidly more complex due to the rising demand for electricity and the need for decarbonization. To manage this complexity, relevant data must be generated, exchanged, and analyzed at speeds and volumes beyond the capacity of human operators alone. Advanced analytical tools like AI will play a significant role in managing future power grids.

AI offers numerous opportunities in this regard. Overall, it could optimize energy consumption to reduce waste while improving efficiency and comfort levels. AI could also better forecast energy demand and supply, allowing energy providers to adjust their production and distribution to increase flexibility and reduce the risk of blackouts. AI tools could open new ways of interacting within the electricity grid, such as the dynamic charging and discharging of electric vehicle batteries.

Furthermore, AI could help integrate various renewable energy sources into the grid. Renewable energy sources such as solar and wind power are intermittent, meaning they are not always available when needed. However, AI can better predict when renewable energy sources will be available and adjust energy storage and consumption to optimize its use.

Still, the adoption of AI in the energy sector is not without its challenges. One of the biggest hurdles is the outdated power system infrastructure. Many of these systems were built decades ago and are not equipped to handle the demands of rapidly emerging technologies and changing consumer needs. Therefore, significant investments will be required to update the grid and realize the benefits of emerging technology.

It's important to note that upon deployment, AI applications could give rise to cybersecurity risks, supplier dependency, unethical decision-making, and jurisdictional and sovereignty challenges. One of the biggest risks associated with AI in the electricity system is the potential for cybersecurity breaches and intrusions into critical systems, which increases as electricity systems become more digitized. Additionally, relying on a few companies to develop and supply core infrastructure for AI poses significant risks to critical infrastructure that could lead to monopolization and create vulnerabilities that could affect service quality and price.

Moreover, when an AI application is designed to optimize efficiency, it can overlook ethical considerations. For example, imagine an AI system that manages power supply to homes. If a section of transmission and distribution experiences congestion, the AI model may prioritize overall efficiency over the needs of individual homes. In this scenario, the AI model may reduce the power supply to some homes to maintain overall efficiency, even if it means certain homes will be left without power. This could expose vulnerable populations to outages based on unfair or discriminatory criteria....

....MUCH MORE