What does AI do in a smart grid, and why is it becoming essential?

AI helps grid operators make better decisions by rapidly processing huge volumes of data from sensors, smart meters, weather forecasts and operational systems. In practical terms, it improves load forecasting, spots patterns humans and traditional models can miss, and supports real-time control so the grid can respond to sudden changes in demand or generation. It is becoming essential because the electricity system is changing quickly: renewables add variability, extreme weather is more common, and new large loads such as AI data centres can appear and shift at speed. AI enables operators to move from reacting after the fact to preparing in advance, improving reliability while unlocking efficiency savings.

How does AI improve load forecasting compared with traditional forecasting models?

Traditional forecasting generally relies on mathematical models tuned using historic demand curves and seasonal patterns. That works well on “normal” days, but it can struggle when something unfamiliar happens and there is no relevant historical reference, such as unusual weather or a sudden shift in how people use electricity. AI models learn from complex, multi-source data and can adapt as conditions change, making them stronger at recognising and predicting atypical behaviour. The goal is not to dismiss legacy models, but to reduce the growing gap between forecast and reality on the days when errors are most costly, helping operators run the system more efficiently and avoid serious disruptions.

Can AI help prevent blackouts and improve grid reliability?

Yes, but it does so by strengthening preparedness rather than acting as a magic switch. More accurate, faster forecasting supports better scheduling of generation, storage and flexibility, and helps operators anticipate stress on the network before it becomes critical. AI can also support dynamic grid management by analysing conditions in near real time and recommending actions that keep frequency and supply–demand balance stable. Importantly, utilities treat this carefully because the consequences of mistakes are severe. AI works best as part of a broader resilience toolkit alongside established forecasting, market signals and experienced operational oversight, so decisions remain robust even when the system behaves in unexpected ways.

What can we learn from Hydro-Québec’s use of AI for load forecasting?

Hydro-Québec provides a clear example of how AI is adopted safely and pragmatically. After a proof of concept using a neural network on a single substation, the utility invested in years of research before deploying deep neural networks into production. It now uses AI for short-term forecasting within a 36-hour window, hourly forecasts 10–12 days ahead using meteorologists’ forecasts, and even longer outlooks based on “historic normal” weather values. Crucially, it runs AI alongside legacy models to compare outputs and flag significant discrepancies for human review. During a heatwave, one legacy model needed major corrections while the AI model successfully anticipated an unusual demand pattern, illustrating where AI can add the most value.

How can AI data centres support grid flexibility rather than simply adding demand?

AI data centres can be a difficult load to predict, particularly during model training, which can consume substantial power. However, they can also become a flexible resource if their workloads are orchestrated in response to grid conditions. Trials such as National Grid’s work with Emerald.AI explore “smart mediation”, where software observes data centre workloads, identifies which tasks are non-critical, and adjusts computing activity to shape electricity demand. This can include ramping down by a defined number of megawatts, holding reductions for an agreed period, and ramping back up gradually to avoid “snapback” that can destabilise the grid. Done well, it creates a more symbiotic relationship between digital growth and system reliability.

Power Technology

Adani Group begins development of Wangchhu hydro project in Bhutan

The project is the first to be undertaken under a partnership targeting 5GW of new hydropower in the country.

Adani Group and Bhutan’s Druk Green Power Corporation (DGPC) have started development of the 570MW Wangchhu hydroelectric project in Bhutan, as reported by Indian news agency ANI.

The foundation stone for the project was laid in the presence of Bhutan’s Prime Minister, Tshering Tobgay, and Adani Group chairman Gautam Adani, signalling the official start of construction.

The initiative follows the signing of key agreements in September 2025, including a Shareholders Agreement and a Concession Agreement with the Bhutanese Government.

The Wangchhu project forms part of a wider collaboration initiated in May 2025, when Adani Group and DGPC agreed to jointly develop 5GW of hydropower projects in Bhutan.

DGPC will maintain a controlling 51% interest in the Wangchhu hydropower project, with Adani Group holding the remaining 49%.

The project is expected to require an investment of approximately $666m and will operate on a build, own, operate, transfer model.

Preparation for the Wangchhu plant included completion of a detailed project report.

The project is set for completion within five years of ground-breaking. It marks the first hydroelectric venture to result from the partnership between Adani Group and DGPC under a memorandum of understanding (MoU) signed in May 2025.

Gautam Adani stated on X: “Indeed, a visionary initiative of His Majesty King Jigme Khesar Namgyel Wangchuck that reflects Bhutan's enduring commitment to mindful and sustainable development.

“In a significant step for our energy partnership, we advanced key milestones by signing an MoU for 5,000MW of hydropower and officially commencing the 570MW Wangchhu Hydro Electricity Project. I am sincerely grateful for the presence of Hon'ble Prime Minister Dasho @tsheringtobgay at the ceremony to mark this occasion.”

Adani Group and DGPC have been in talks regarding additional hydropower projects as part of their partnership.

Adani added: “We will continue to strengthen this partnership rooted in sustainability, trust and long-term value.”