Balancing Renewable Energy with AI and Smart Grids

New Tech Tuesdays

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Published August 5, 2025

While the world is rapidly moving forward with renewable energy, keeping the lights on in the absence of sunlight or wind is still a major challenge. Recent extreme weather events, like the 2024 Category 5 Hurricane Beryl in the Caribbean and Gulf of Mexico or Canada’s severe ice storm in 2023, exposed how fragile traditional power grids can be and have made it clear that we need a smarter way to manage energy.

The solution lies in a smarter, more adaptive grid that can predict energy demand spikes, automatically balance power distribution, and make energy storage more efficient.^[1]

In this week’s New Tech Tuesdays, we examine how artificial intelligence (AI)-driven grids can make renewable energy a true 24/7 power source by combining real-time demand response, predictive analytics, and advanced storage solutions.

One of the biggest challenges in energy is the fluctuation of power from renewable sources. Electricity can only be produced by renewable sources, not stored, and the production from solar panels and wind energy can be unpredictable.^[2] If these sources aren’t properly managed, these inconsistencies can cause supply gaps, grid instability, and greater dependence on backup power sources.^[3]

But there are smart solutions. AI-driven demand response systems analyze consumer consumption patterns, predict demand surges, and adjust energy distribution in real time to ensure electricity is efficiently allocated, preventing brownouts and blackouts. AI also predicts demand fluctuations by analyzing historical and real-time data. Recently, the climate risk firm Sunairio secured US$6.4 million in late 2024 to refine AI models that help utilities anticipate supply shifts, enhancing grid resilience.^[4]

AI is also advancing energy storage systems by predicting supply and demand fluctuations to ensure efficient battery charging and discharging. Companies like EcoFlow are integrating AI-powered home energy management systems to optimize how households store and use energy.^[5] AI algorithms also extend battery life by preventing overcharging, which reduces energy waste and lowers costs.

Energy generation is no longer confined to large-scale power plants. Now, decentralized energy systems like microgrids and peer-to-peer energy trading are changing how electricity is produced and distributed.

The decentralization of various types of energy systems and sources is starting to gain traction in the industry. Energy management systems connect localized power sources with the main grid. By balancing supply and demand, these systems reduce transmission losses, improve grid security, and support energy independence (Figure 1). Smart energy company GridBeyond is a leading example of those using energy platforms to integrate renewables into decentralized grids.^[6]

Figure 1: Decentralized energy networks control power distribution between solar panels, batteries, and the grid. (Source: Chatchanan/stock.adobe.com; generated with AI)

AI-driven smart grids are still just getting started. Future advancements could include quantum computing for energy forecasting, blockchain integration for secure energy transactions, and self-healing grids that detect and fix issues automatically. As AI evolves, smart grids will become even more efficient, resilient, and sustainable.

This week's New Tech Tuesdays spotlights the PSC150W series DC-DC converters from CUI Inc. The converters offer high power density of up to 150W in a compact, 1/4-brick package. With an ultra-wide 12:1 input voltage range (14V_DC to 160V_DC) and overcurrent, overvoltage, and overtemperature protections, the PSC150W series converters ensure system reliability and resiliency in complex smart grid environments.

AI is already making a difference in the power grid, and as it continues to take shape as a technology, so will its impact on smart grids, with renewable energy becoming a 24/7 reality thanks to real-time demand response. Moreover, AI will help optimize storage and decentralized energy management as we move toward smarter, more resilient energy systems.

Sources

[1]https://online-engineering.case.edu/blog/role-of-control-systems-in-smart-grid-technology
[2]https://doi.org/10.1016/j.heliyon.2024.e30466
[3]https://www.mckinsey.com/industries/electric-power-and-natural-gas/our-insights/how-grid-operators-can-integrate-the-coming-wave-of-renewable-energy
[4]https://www.axios.com/2024/12/20/ai-climate-risk-software-sunairio-raises-money
[5]https://www.ecoflow.com/us/ces-2025
[6]https://gridbeyond.com/energy-management-systems-a-distributed-energy-resource-management-solution/