Thanks to a record-breaking heat wave, Texas power prices are surging right now. And artificial intelligence could hold the key to fixing the problem.
Temperatures are running above 100 degrees Fahrenheit throughout Texas. In cities like Corpus Christi, San Angelo, Del Rio, and Kingsville, temperatures are breaking all-time records. And the state’s tropical humidity hasn’t gone anywhere, either, creating a dangerous combination that is wreaking havoc on Texans right now.
In response, locals are turning up their AC units. But that is causing an intense strain on the state’s energy grid. The Electric Reliability Council of Texas – known as ERCOT – is urging consumers to cut back on energy use during this heatwave.
And the energy consumers are using is costing them a fortune. Earlier this week, power prices across Texas surged 80% higher in a matter of hours.
In short, Texas has an enormous energy problem right now.
The Texas Power Dilemma
The issue with Texas’ power grid isn’t about the volume of energy required. The state generates ample power due to its vast access to energy resources, including oil, wind, and solar.
Rather, the issue lies with distribution. Some folks accidentally leave the AC cranked at their houses when they are in the office. Some offices accidentally leave their AC on overnight when everyone is home.
This lack of “smart distribution” of energy is why Texas is asking locals to conserve energy during this dangerous heatwave.
A smart energy grid is an advanced electricity distribution system that leverages AI technology to optimize energy generation, transmission, and consumption.
It incorporates sensors, communication networks, and computational algorithms to gather real-time data. Then it analyzes it and makes informed decisions to improve the overall efficiency, reliability, and sustainability of the grid.
Of course, AI is the core enabling technology of a smart grid.
Say Hello to the Next-Gen Energy Grid
AI can help predict electricity demand patterns, optimize power generation from renewable sources, enhance energy storage management, enable dynamic pricing mechanisms, and even facilitate automated fault detection and self-healing capabilities.
By analyzing vast amounts of data and adapting to changing conditions, AI empowers the grid to respond intelligently, minimize energy waste, reduce costs, and support the integration of renewable energy sources into the grid more effectively.
Overall, AI-powered smart energy grids aim to transform the traditional power grid into a more adaptive, resilient, and eco-friendly infrastructure that meets the dynamic energy needs of communities everywhere.
If Texas employed a complete AI-powered smart energy grid right now, its power prices wouldn’t be surging. And ERCOT wouldn’t be urging locals to turn off the AC units.
That smart grid would’ve been able to:
- Predict this heat wave in advance.
- Anticipate energy demand during this heat wave.
- Create an energy reserve in advance to meet excess demand.
- Dynamically distribute power across the state’s grid during the heat wave so that there was never a shortage anywhere.
Of course, this doesn’t just apply to Texas.
California has had its fair share of power problems and blackouts, too. Same with Florida and New York.
Even right now, this same heat wave that is crippling the power grid in Texas is also hitting Mexico and depleting Mexico’s energy reserves.
This isn’t a “Texas power problem.” It is a global problem. The world’s energy grid is outdated and ill-equipped to meet the increasingly large and complex demands of folks across the globe.
It needs to be updated.
More specifically, the world’s energy infrastructure needs an AI upgrade.
Such an upgrade is inevitable. And when it does happen, it will create a multi-trillion-dollar investment opportunity.
The Final Word
Recently, we put together the ultimate portfolio of the top five AI stocks to buy right now to potentially score substantial returns over the next few years.
One of those stocks is one we consider the leader in the energy AI revolution – a company that is pioneering a breakthrough technology and using AI to create smart energy grids.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.