How AI is reshaping the way we build, run and secure the grid, with Microsoft's Per Christian Honningsvaag
A sneak peek condensed Q&A from the latest episode of the Let's Talk Energy podcast
In this week's edition of Let's Talk Energy, Per Christian Honningsvaag, Microsoft's EMEA Business Leader for Energy & Resources, joins Noah to try to understand how AI might be used to future-proof the grid and what bumps we could encounter along the way. Stream the full episode now: How AI is reshaping the way we build, run and secure the grid
Noah Brenner: There is a lot of anxiety about AI’s power use and the impact on the grid. What’s the case that AI can actually strengthen grids rather than strain them?
Per Christian Honningsvaag: “There is a lot of anxiety about AI’s power use and the impact on the grid. But I think the untold story is that AI actually can strengthen our existing grids. We do see huge potential to optimize today’s grid operations so they are more flexible and efficient. The power grid is evolving into one of the most data-intensive real-time systems globally. And utilities today, they do collect the data from smart meters, grid sensors, SCADA systems, grid-connected DERs — or distributed energy resources — like solar batteries, EVs, but also weather and market signals. And AI can continuously learn from these vast amounts of data, predicting demand spikes or equipment issues earlier, and then orchestrate faster, more precise control actions than any human or traditional software could alone. So eventually this means fewer unplanned outages and smarter use of the power lines that we already have today.”
NB: What is it that AI specifically does that couldn’t be achieved with a more traditional digital solution?
PCH: “Digitalization of the grid has been underway for decades. And we have had SCADA systems, smart meters, automated switches. Those are essentially rule-based or remote-control technologies that gave us a lot of efficiency. But you can look at AI as the next step in that evolution, if you will. It goes beyond pre-programmed logic. So AI can learn from data, it can spot complex patterns and even generate new solutions dynamically, which classical software might miss. For instance, we tried for years to speed up energy project permitting through traditional software and frankly hit the wall. But when we applied generative AI to the problem, it could quickly read thousands of pages of regulatory text and draft permit documents within minutes — something that used to take experts months.”
NB: Can AI help us avoid the need for new grid infrastructure, or is new hardware still unavoidable?
PCH: “There are also limits to it. Let’s be clear on that — because we will always need to invest in physical infrastructure for the energy transition. Digital solutions can definitely delay or reduce significant amounts of that hardware growth, buying us time and also saving money. So I don’t think it’s an either/or — it’s an “and both.” No amount of software will give you a new transmission line or a power station if you just don’t have enough capacity built. But what smart software and AI can do is squeeze every bit of efficiency out of existing assets so that we can serve more demand with the same equipment.”
NB: How should we think about human oversight as AI takes on a larger role in managing critical grid infrastructure?
PCH: “Trust and oversight is absolutely central to how we deploy AI in the grid or in critical infrastructure as such. So we are not about to let a black-box AI just run off and control critical equipment without guardrails. Human experts remain in charge and we keep that human in the loop — safeguards by design. We use AI to augment their decision-making. For example, AI might crawl through thousands of sensor signals and then suggest an action plan, but a grid operator will review it and approve it. So we design these systems to explain their recommendations and back them up with data. Over time, as AI proves itself and our comfort grows, more routine decisions might be delegated to these smart systems. But I foresee that human oversight will always be part of the equation for critical infrastructure. Even though we trust autopilots, even when we fly planes, we still keep a trained pilot in the cockpit.”
NB: Is an AI-integrated grid more or less secure against cyber attacks than a digitalized one?
PCH: “Security is paramount for any grid technology, AI included. So on one hand, a more digital, AI-driven grid does introduce new cyber considerations. If you have more connected sensors, more software in control loops — yes, the attack surface can increase. So that’s why we design with a security-first mindset. We partner with specialists like Dragos on the operational technology side, and apply zero-trust architectures to every layer. In other words, we assume breach and we constantly verify. On the other hand, AI can actually make the grid even more secure. So AI can monitor network traffic and grid behavior in real time, flag anomalies and intrusions far faster than any human might. While an AI-integrated grid must be heavily secured like any other digital system, it also becomes an active defense tool.”
NB: Bill Gates said in 2024 that AI would ultimately save more power than it consumes. Two years on, do you still think that’s possible?
PCH: “I do share Bill’s optimism, first of all. His point was essentially that, yes, AI uses energy, but it also drives bigger efficiency gains elsewhere — enough to more than balance out its own footprint. Along the lines that we have already talked about: AI helping grids avoid waste — like reducing renewable curtailment, congestion costs, speeding up permitting to deploy clean energy faster, optimizing power plants to burn less fuel, enabling more demand response, and so on. All of these gains add up. Meanwhile, data center operators, including ourselves, are pushing hard on efficiency — like developing new chips and new cooling technologies — and even in software development. So AI helps to build software code that is more efficient to run, so the hardware consumes less energy while running this new AI-based software.”
Stream the full episode now: How AI is reshaping the way we build, run and secure the grid
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