Four Ways AI is Driving the Energy Transition and a Decarbonized Future

Source: Peter Weckesser| · THE FAST MODE · | July 31, 2025

The journey toward a decarbonized future, driven by the global energy transition to renewables, is transforming how we produce, consume, and manage energy. As electrification and decentralized energy generation accelerate, managing energy flows across homes, businesses, grids, and microgrids is becoming increasingly complex.

Utilizing artificial intelligence (AI) and robust communication networks can help us navigate this new landscape effectively. These technologies can help optimize energy management, enhance grid resilience, and foster a sustainable, low-carbon economy.

1. The foundational role of communication networks

At the heart of the energy transition lies a fundamental shift from centralized power systems to decentralized networks, where energy consumers increasingly become energy producers, or prosumers.

This transformation requires real-time coordination between diverse energy assets, including solar panels, electric vehicle (EV) chargers, battery storage, home energy management systems (HEMS). Communication networks are essential to this coordination, enabling real-time data exchange and control across interconnected devices and systems.

High-performance AI applications depend on the seamless flow of data between devices, local microgrids, and the central grid. For instance, microgrids, often encompassing solar panels, batteries, and smart appliances must continuously communicate with central networks to balance demand and supply effectively. Without this real-time data exchange, the stability of the grid would be at risk as energy demand becomes more unpredictable and decentralized.

This need for continuous, low-latency data exchange is particularly critical as more intermittent renewable energy sources come online. For example, EV batteries can function as distributed energy storage units, potentially becoming the largest electricity storage capability globally. However, this potential can only be realized if communication networks are sophisticated enough to manage these dynamic, real-time energy flows.

2. The rise of prosumers and decentralized energy

Prosumers are becoming key to the energy ecosystem. As consumers and businesses install more renewable energy systems and battery storage, many are beginning to contribute excess power back to the grid, transforming from passive users into active participants in the energy ecosystem. This shift not only reduces reliance on fossil fuels but also enables more resilient and localized energy systems.