Quantum Technology Use Cases in Energy & Utilities
Source: Marin Ivezic | · POST QUANTUM · | October 11, 2023
The energy and utilities sector is grappling with unprecedented complexity—from integrating variable renewable power to managing sprawling smart grids. Classical computing, which has served the industry for decades, is now straining to meet these demands. In contrast, quantum computing offers a fundamentally new approach, harnessing quantum bits (qubits) that can explore countless possibilities in parallel. This paradigm shift holds immense promise for solving “unsolvable” problems in energy, from optimizing grid operations to simulating novel materials that boost efficiency. In short, quantum computing’s ability to handle exponential complexity can unlock insights and optimizations beyond classical limits, a potential game-changer for power and utilities.
Quantum technologies matter for energy because many challenges in this sector involve combinatorial optimization and molecular simulation at scales classical computers cannot handle. For example, routing power through a grid with thousands of control decisions or modeling the chemistry inside a battery are tasks that overwhelm today’s fastest supercomputers. Quantum computers leverage phenomena like superposition and entanglement to examine a vast number of configurations simultaneously, potentially delivering solutions faster or more accurately. The result could be more efficient energy distribution, smarter storage solutions, and accelerated innovation in clean energy technology. As one industry expert put it, quantum computing isn’t just about raw speed—it’s about tackling problems that were previously intractable, making it a critical tool for the future of energy and utilities.
Current Developments
Recent years have seen a surge of research initiatives and industry investments at the intersection of quantum computing and energy. Major energy companies and utilities are partnering with quantum tech firms and labs to explore practical use cases. For instance, ExxonMobil became the first energy company to join IBM’s Quantum Network, collaborating to develop quantum algorithms for challenges like optimizing liquefied natural gas (LNG) shipping routes and carbon capture processes. In Europe, utility giants are also getting involved: E.ON, one of Europe’s largest utilities, is working with IBM to address the growing complexity of electricity distribution. This partnership focuses on quantum algorithms for energy pricing and risk management amid volatile weather and demand, with E.ON aiming to hedge against outages and market swings using quantum-enhanced models.
On the research front, national laboratories and startups are actively linking quantum computers with real energy systems. In mid-2023, a team at NREL (National Renewable Energy Laboratory) demonstrated a pioneering “quantum-in-the-loop” experiment, integrating a 100-qubit quantum processor with power grid control hardware to test quantum algorithms on live grid simulations. This open-source testbed allows researchers to study how quantum optimization might improve grid stability in real time. Likewise, Oak Ridge National Lab and partners have prototyped quantum key distribution (QKD) on a utility fiber network to secure grid communications (more on that later).