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 That works well on “normal” days, but it can struggle when something unfamiliar happens and there is no relevant historical reference, such as unusual weather or a sudden shift in how people use electricity.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

OMV secures $144m in funding for Austrian green hydrogen project

The new 140MW plant will supply green hydrogen to the Schwechat refinery, aiming to cut annual carbon emissions significantly.

OMV has secured up to €123m ($143.7m) in production funding from Austria Wirtschaftsservice (aws) to develop a 140MW green hydrogen electrolyser plant in Bruck an der Leitha, Lower Austria.

Expected to become operational by the end of 2027, the facility is set to play a key role in the decarbonisation of industrial processes at OMV’s refinery in Schwechat.

It is set to become one of Europe’s five largest green hydrogen production sites and the largest of its kind in Austria and south-eastern Europe.

OMV will invest a sum in the mid-hundreds of millions of euros in the project, which aims to produce up to 23,000 tonnes (t) of green hydrogen annually using renewable electricity generated from wind, solar and hydropower sources.

Annual output from the plant is forecast to reduce carbon emissions by up to 150,000t, contributing towards decarbonisation efforts at OMV’s Schwechat refinery.

The European Hydrogen Bank (EHB) previously recommended the project for funding following a positive assessment.

The funding agreement with aws formalises Austria’s support for the initiative via EHB’s programme administered by the former as national processing office.

OMV CEO Alfred Stern said: “The positive assessment made by the EHB and the resulting funding from the Austrian state for our green hydrogen plant is a strong signal for the future of sustainable energy supply and Austria as a location.

“With our project, we are setting a milestone for the energy transition in Europe and showing how OMV combines innovation and responsibility.”

Construction of the Austrian green hydrogen plant began in September 2025 after permits for building and operations were granted.

As part of its development, OMV will construct a hydrogen pipeline of approximately 22km in length to connect the new plant directly with the Schwechat refinery.

In November 2025, OMV and Masdar signed an agreement to establish a joint venture for financing, construction and operation of the plant.

The partnership will see OMV hold a majority stake while Masdar will own 49%.

The transaction is expected to close in early 2026, pending final documentation and regulatory approvals.

A consortium led by Siemens Energy will deliver the engineering, procurement, construction services for the plant.

Siemens Energy will provide electrolysis technology and oversee technical planning as well as supply critical equipment such as electrolysis stacks and compressors.

STRABAG, the other partner in the consortium, will handle civil engineering works and industrial infrastructure construction on site.

OMV currently operates a smaller-scale, 10MW electrolyser in Austria and expects the new facility to significantly expand its capacity for local production of green hydrogen.

The company’s strategy includes increasing sustainability at its Schwechat refinery through direct supply of green hydrogen produced at Bruck an der Leitha.