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White paper: How can the energy sector leverage AI to deliver consumer benefits?
Read techUK's latest white paper, including executive summary.
Executive summary
The UK energy sector is undergoing intense structural transformation. As the system becomes more decentralised, digital and reliant on variable renewable energy generation, this adds to complexity across generation, networks and supply. Artificial Intelligence (AI), and the data that underpins it, is emerging as a critical enabler of this transition.
Despite concerns that AI may exacerbate existing pressures, this paper focuses on targeted, effective applications of this technology within the energy system. Across generation, networks, and supply, AI can – and is already – improving forecasting, optimisation and automation. These capabilities translate into clear consumer benefits through lower system costs, improved reliability and faster deployment of clean energy infrastructure.
The policy and regulatory environment
The Government has set out its ambition for the UK to lead in AI through the AI Opportunities Action Plan. This ambition has now turned to the energy sector, with DESNZ’s Review of AI Deployment in Electricity Networks underway, and an AI Strategy expected in Autumn 2026. Last month (March 2026), the Government took a significant step forward in enabling both data and AI, with the publication of the Energy Digitalisation Framework, which details plans for a digitalisation coordination function and data domain coordinators.1 Regulators are looking ahead too, working to balance innovation with safety and trust. Ofgem has established regulatory sandboxes, launched an AI Reg Lab, and published guidance on the ethical use of AI.
At the same time, investment is strengthening the data infrastructure needed for AI. This includes £571 million for data and digitisation under Ofgem’s upcoming price review for transmission, RIIO-T3. Projects supported by the regulator’s Strategic Innovation Fund (SIF) and Network Innovation Allowance (NIA) are moving from pilots to wide-scale deployment, showing how AI is delivering measurable value. Indeed, NESO estimates that predictive maintenance alone could save the UK economy around £5.5 billion by 2030.2
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Original article link: https://www.techuk.org/resource/how-can-the-energy-sector-leverage-ai-to-deliver-consumer-benefits.html
