AI can help make renewable energy assets more efficient in the following ways:

Managing generation output. One of the key problems of using solar and wind power assets is that their output changes over time, due to the sun going up and down, and due to winds blowing more or less at different times.

Forecasting what power output will look like on a grid scale and for individual assets isn’t easy, but AI algorithms can help with that. This means that grid operators know when gas powered backup generators are needed, and they can optimize when batteries are loaded and when their stored energy is used, and so on.

On top of that, AI helps predict what power demand will look like at certain times, thanks to forecasting algorithms and analyzing patterns. Knowing what demand and supply will look like in the future is a key element of utilizing renewable energy generation in the most efficient ways.

AI can also operate renewable energy assets more efficiently. AI can, for example, help optimize the tilting of solar panels throughout the day, for solar panels that can be moved, incorporating the sun’s movement that is slightly different for every day.

Something similar can be done for wind parks, where wind turbines that are in the front have an impact on air flow, reducing the efficiency of wind turbines in the back. By turning the fans of the front wind turbines slightly, this effect can be minimized. AI algorithms can help automate this process, depending on where wind conditions are at each point in time for a specific wind park. This means more power generation from each wind park, reducing the need for backup power generation and fossil fuel consumption.

AI also offers predictive maintenance tools. That means wind turbines, generators in hydro plants, etc. can be serviced or renewed before they break, which reduces down time and thus increases overall output.

The AI Renewable Winners

Investors that want to benefit from this trend have a wide range of investment choices: Some industrial companies that are active in manufacturing renewable energy assets themselves offer AI solutions to wind park and solar park operators and should thus benefit from increased AI usage. This includes GE Vernova (NYSE: GEV) and Siemens Energy (NYSE: SMEGF), for example.

Investors can also go for Artificial Intelligence companies with a broad space that includes, among many other things, weather-related tech or that can be called pick and shovel AI companies. This includes Alphabet (NASDAQ: GOOG), which offers the WeatherNext AI model, and AI champion NVIDIA (NASDAQ: NVDA), whose chips are key in training AI models that help with all kinds of tasks — including making renewable energy more efficient.

Investors that are interested in broader exposure to the world of tech and Artificial Intelligence should take a look at our top picks.