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 That works well on “normal” days, but it can struggle when something unfamiliar happens and there is no relevant historical reference, such as unusual weather or a sudden shift in how people use electricity.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

Osaka Gas begins operations at new Himeji plant in Japan

The Himeji power station comprises two units, each with a capacity of 622.6MW.

Osaka Gas has commenced commercial operations at the No.1 unit of its new 1.25GW Himeji gas-fired power plant in western Japan, reported Reuters.

This marks the start of expanded domestic thermal power generation capacity for Osaka Gas, with the Himeji facility utilising a gas turbine combined-cycle system.

The Himeji power station comprises two units, each with a capacity of 622.6MW. According to Osaka Gas, the No.2 unit is scheduled to begin operations in May.

Once both units come online, the company's domestic thermal power generation capacity is expected to increase from approximately 2GW to around 3.2GW.

The facility uses natural gas as fuel and is designed to meet rising electricity demand as data centres and AI-driven applications require more energy.

Japan’s Strategic Energy Plan, which was approved in February 2025, identifies natural gas as a realistic transition fuel towards achieving net-zero carbon emissions by 2050.

The country has been increasing new gas-fired capacity through auctions, mainly to replace ageing coal plants, according to the Organisation for Cross-regional Coordination of Transmission Operators, Japan.

In April 2025, ArcLight Capital Partners reached a definitive purchase agreement with Osaka Gas USA and Kyuden International Americas to acquire their interests in Kleen Energy Systems, a 620MW natural gas-fired power generation asset in New England, US.

ArcLight stated that the acquisition aligned with its strategy to address increasing power demand driven by AI and electrification trends.

The company noted that AI-driven data centre development and increased electrification, such as electric vehicle adoption, was driving demand for sustainable and affordable power solutions.