UK set to introduce cheaper energy bills using AI

Energy Meter

The government has called on businesses and researchers to turbocharge AI and digital tech to cut peak demand for grid electricity by two gigawatts, equivalent to powering over 1.5 million homes.

An initial £4 million for the first year of a five-year challenge will support researchers to come up with solutions that help shift electricity demand in evenings and weekends by two gigawatts – potentially cutting energy costs in the long-term for the consumer, boosting energy security, and further reducing reliance on fossil fuels – helping to make Britain a clean energy superpower.

As demand for energy spikes – like in the early evening when people return home – the grid often turns to gas-fired power stations, which are more expensive and more polluting, while leaving the UK exposed to volatile global gas markets.

This new push is expected to deliver better forecasting, as well as help manage and shift demand at busy times by the equivalent of the amount used by one and a half million homes. Examples could include:

  • Getting AI to predict how much energy we’ll use days ahead of time. It can do this by plugging in data from things like smart meters, weather forecasts, and when people have the telly on.
  • Automatically heating or cooling buildings when clean energy is most available, and at its cheapest.
  • Using parked electric cars as giant batteries – charging them when electricity is cheap and sending power back to the grid when it’s needed.

This could reduce the need to build network infrastructure and new power plants, leading to a reduction in consumer bills in the longer term.

The initial £4m of funding will, by April 202,6 bring Britain’s expert AI and energy businesses, universities and research organisations together to explore where current solutions can be scaled up, build use-cases and enable testing – including building simulation and modelling capability – so successful products can be brought to market more quickly.

The programme will also look at where government involvement and funding can help to get them moving and improve people’s lives more quickly.

“We’re calling on Britain’s brightest minds and innovative businesses to help us cut energy bills, boost energy security, and reduce our reliance on fossil fuels,” said Science Minister Lord Vallance.

“This is a challenge with real impact – if we get it right, we’ll save families money, protect the planet, and make the UK a clean energy superpower. R&D has the power to change lives, and we want to harness it to deliver real, measurable progress towards the government’s five missions and turn bold ideas into real solutions by 2030.”

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