National Grid Partners, the venture capital and innovation arm of the UK utility firm, has unveiled plans to invest $100 million in AI startups in the energy field.
With pressure on the grid increasing, the investment division is exploring solutions that will help make the grid more efficient, resilient, and dynamic. This means improving efficiency, cutting customer costs, reducing emissions, and ensuring energy security.
"Power systems like National Grid's are seeing unprecedented challenges, with soaring demand driven by data centers and the electrification of heat and transport, as well as requirements for a more flexible grid with the rise of renewables and EVs," said John Pettigrew, CEO of National Grid.
"We are seeing artificial intelligence play a vital role resolving these issues and delivering compelling results across our operations. Scaling AI will continue to help National Grid provide the most efficient, modern grid available for our millions of customers in the US and UK."
The first funding pledge has been granted to Amperon, a provider of AI-powered energy forecasting and analytics solutions aimed at improving grid reliability, managing financial risk, and optimizing renewables.
"As the energy landscape becomes more complex and dynamic, the need for accurate, real-time data and predictive insights has never been more critical," said Raghuram Madabushi, investment director at National Grid Partners.
"Amperon's AI-driven approach to forecasting is a perfect fit with our vision for a smarter, more resilient grid – and this marks the inaugural investment from our new, $100 million commitment to AI solutions advancing our energy system."
National Grid eyes tangible use-cases
National Grid Partners said it's already invested $150 million in 18 AI companies focusing on energy innovation, with more than 80% of its portfolio companies strategically engaged with National Grid business units.
One such is Sensat, which uses AI to help owners of critical infrastructure visualize and collaborate via digital twins, thereby accelerating projects and lowering costs.
The utility giant is currently using the firm’s tech to speed up substation upgrades and connect data centers to the grid.
AI is a mixed blessing when it comes to energy. Late last year, an investigation by Schneider Electric into the possible future of AI’s electricity consumption over the next decade found 'significant concerns' over capacity.
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The International Energy Agency (IEA), meanwhile, has forecast that the electricity consumption associated with global data centers will more than double between 2022 and 2026, peaking at over 1,000 TWh next year. That's equivalent to Japan’s national electricity consumption.
Data center operators are concerned about pressure from AI-driven demands, with seven-in-ten IT decision makers recently telling Cadence researchers that energy grids are being pushed to breaking point.
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