Energy Innovation News

AI and Energy Efficiency: Consumption, Management, and Impact

Gexa Energy
April 26, 2023
minutes read
Gexa Energy
Publication Date:
January 9, 2024
Last updated:
January 30, 2024

Artificial Intelligence (AI) is reshaping multiple facets of our daily lives, from how we shop to how we drive. Notably, AI’s footprint is deeply embedded in the energy sector, driving substantial transformations in consumption, management, and broader impacts. Let’s explore this revolutionary journey of AI and energy efficiency.

Consumption: AI-Driven Smart Solutions

AI Energy Consumption  

One of the most common audience queries centers around the energy consumption of AI. So, how much energy does AI use? While sophisticated AI models require significant computing power and energy, the efficiency they bring to other processes often results in net energy savings.

AI consumes a significant amount of energy, particularly for advanced deep-learning models, and some wonder if this poses environmental problems. AI energy consumption is high due to the need for storing data in large data centers and then using that data for training machine learning or deep learning models. According to a paper from the University of Massachusetts Amherst, training an AI model emits as much carbon as five cars would over their lifetimes. And Google’s researchers discovered that AI accounted for 10-15% of the tech company’s overall electricity consumption.  

AI and Energy Efficiency  

Although AI consumes a significant amount of energy, several AI efficiencies can outweigh AI energy consumption. Here are some examples:

Management: AI in the Energy Industry Revolution

Virtual Power Plants: The AI-driven Energy Aggregator  

Using AI, virtual power plants consolidate various energy sources, ensuring demand meets supply efficiently. By analyzing real-time data, AI predicts energy demands and directs resources where they’re most needed.

Vehicle-to-Grid Systems and AI  

A modern marvel, the vehicle-to-grid system allows electric vehicles to communicate with the power grid, either supplying energy back to the grid or intelligently charging when demand is low.

Impact: Broader Ramifications of AI in Energy Efficiency

AI in Renewable Energy: A Green Affair  

Harnessing renewable sources like wind and solar can be unpredictable. However, AI’s predictive models, combined with data analytics, make renewable energy benefits more tangible, optimizing the harnessing of these sources.


Open AI Energy Initiative: A Case Study in Success  

The Open AI Energy Initiative stands out as a beacon of the successful integration of AI into energy processes. It highlights the symbiosis of AI models with energy data, leading to actionable insights and significant efficiency boosts.

The Gexa Promise

At Gexa Energy, our commitment is clear: a sustainable future powered by smart technology. With tailored energy plans, we’re revolutionizing energy consumption and management.

Learn more about how current legislation is working towards promoting sustainability in everyday life with our articles on the Inflation Reduction Act and Clean Energy Goals Progress Report.  

Success Stories  

AI is being used in various ways to improve energy efficiency, and some notable success stories demonstrate AI’s potential to help reduce energy waste and promote sustainability.  

  • DeepMind AI for Data Center Efficiency: Google’s DeepMind AI reduced energy used for cooling Google data centers by 40% by training deep neural networks on historical data collected by the thousands of sensors within the data center.  
  • Vestas: Vestas worked with Microsoft and Microsoft partner to use AI and high-performance computing to optimize what is known as wake steering to generate more energy from wind turbines.  
  • E.ON SE: E.ON SE uses drones and a custom-made AI solution to help keep workers and the energy supply safe.  
  • Tesla’s Battery Management: Tesla uses AI to manage the performance and longevity of their electric vehicle batteries. AI can optimize the charging and discharging of batteries, making them more efficient and durable.  
  • Tesla’s Solar Panels: Tesla uses AI to optimize the performance of their solar panels. AI can predict energy demand and adjust production accordingly, making solar energy more efficient and cost-effective.  

Wrapping Up

AI in the energy industry is not a fleeting trend. As the nexus between AI and energy efficiency tightens, we’re witnessing a transformative shift in how we understand energy consumption, management, and its impact on our world. The future is smart, and it’s powered by AI.

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Gexa Energy purchases renewable energy credits (RECs) from renewable generation resources throughout North America to match 100% of the energy sold under your electric plan. The RECs Gexa purchases represent the renewable attributes of power generated from a variety of renewable energy sources, including, but not limited to, the sun, wind, geothermal, hydroelectric, wave or tidal energy, and biomass or biomass-based waste products, including landfill gas.