Transforming Smart Grids With AI

Source: Satyajit Dwivedi | · CIO AFRICA · | June 4, 2025

Smart grids with AI is about doing so in a way that supports long-term sustainability and climate goals.

The global market for artificial intelligence (AI) in the energy and utilities sector was valued at $10.56 billion in 2023 and is projected to surge to $45.78 billion by 2030, signalling the critical role AI will play in reshaping the future of power systems.

At the same time, African cities are at a pivotal point in their energy transformation journey. With nearly 600 million people across the continent still lacking access to electricity, the goal of building inclusive and sustainable smart cities remains out of reach without first modernising the foundational grid infrastructure. As efforts intensify to upgrade ageing assets and extend electricity access to underserved communities, AI is fast emerging as a catalyst for this transformation.

Africa’s evolving energy landscape highlights the urgent need for smarter, more responsive grid systems. AI will be central to this shift, offering the intelligence, agility, and real time decision-making capabilities required to manage increasingly complex and dynamic electricity networks.

The urgent need for smarter grids in Africa

Traditional power grids were built for a simpler, one-directional world where electricity flowed from centralised power plants to passive consumers. That linear model, which served the industry for over a century, is no longer sufficient. Today, the power network has become inherently multi-directional. Urban centres are witnessing a surge in consumers who also generate energy, such as households or businesses with rooftop solar panels feeding electricity back into the grid. Simultaneously, rising electrification, extreme weather events, ageing infrastructure, and the integration of renewable energy sources are making the grid more volatile and complex.