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 That works well on “normal” days, but it can struggle when something unfamiliar happens and there is no relevant historical reference, such as unusual weather or a sudden shift in how people use electricity.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

Energy Vault breaks ground on 150MW SOSA Energy Center in Texas

Developed for the ERCOT North market, the project is set to begin commercial operations in Q2 2027.

Energy Vault has commenced construction of the SOSA Energy Center, a 150MW/300 megawatt-hour battery energy storage project in Madison County, Texas, US.

The battery energy storage system (BESS), developed for the ERCOT North market, is expected to enter commercial operation by the second quarter of 2027 (Q2 2027).

Energy Vault, an energy storage company, acquired the asset from Savion, a subsidiary of Shell, in Q4 2025 under its Asset Vault platform.

Energy Vault chairman and CEO Robert Piconi said: “Breaking ground on the SOSA Energy Center so quickly after acquisition demonstrates the velocity with which we are executing and growing Energy Vault’s Asset Vault platform and underscores our strategic commitment to the Texas ERCOT market, one of the most dynamic energy markets in the US.”

The SOSA Energy Center is the first site to begin on-site construction through Asset Vault, Energy Vault’s wholly owned subsidiary focused on developing, owning and operating energy storage assets.

Orion Infrastructure Capital provided a $300m preferred equity investment in support of Asset Vault’s activities.

According to Energy Vault, the SOSA Energy Center benefits from completed environmental and interconnection milestones, full site control and a clear title.

Upon completion, Energy Vault intends for the facility to supply grid support and renewable integration services to the Texas energy system.

The company is engaged in advanced talks over a six to eight-year offtake agreement with an investment-grade counterparty.

Over its technical life, the SOSA Energy Center is forecasted to generate more than $350m in total revenue and approximately $17m–$20m per year from recurring contracted cash flows.

Energy Vault will manage engineering, procurement and construction activities internally and maintain long-term service agreements for the BESS.

This vertically integrated structure enables direct control over operations and ongoing revenue optimisation throughout the asset’s life cycle, said the company.

The start of construction at SOSA brings Energy Vault’s total portfolio under operation or construction to more than 340MW. This includes three additional projects that began off-site work in late 2025 and are due to come online between late 2027 and late 2028.

Across its portfolio, Energy Vault applies its proprietary B-VAULT battery energy storage technology to achieve expedited deployment times and high availability levels.

The company’s broader B-VAULT installations now exceed two gigawatt-hours globally across deployed or contracted systems.