As India hurtles towards a 366 GW peak power demand by 2030, a new energy equation is emerging—one where solar power, electric vehicles and battery storage must work in sync, not in silos. The missing link, industry experts say, is artificial intelligence, which can optimise this complex system in real time and unlock up to 30% efficiency gains without adding new infrastructure.
“AI becomes critical when you have to balance demand and supply at multiple points simultaneously,” Frédéric Godemel, EVP–Energy Management at Schneider Electric, told Financial Express on the sidelines of the Innovation Summit, underscoring the urgency of moving from policy intent to execution at scale.
Q1. India’s power demand is rising sharply. How does this change the nature of the grid challenge?
I think the nature of the challenge has fundamentally changed. Earlier, the system was designed around predictable demand and centralised generation. Today, we are seeing a structural shift driven by electrification, cooling demand, data centres and industrial growth.
At the same time, supply is becoming variable because of renewables, especially solar. So now you have unpredictability on both sides generation and consumption. That makes balancing the grid far more complex. The rise to 366 GW is not just about adding capacity — it is about managing a system that is far more dynamic, decentralised and data-intensive than before.
Q2. Where does AI fit into this new, more complex grid?
In my view, AI becomes absolutely essential in this environment. When you move to a decentralised system with multiple generation sources and millions of consumption points, the number of variables increases exponentially.
“You need to balance demand and supply at many points… that is where AI comes in.” AI acts as the brain of the system. It collects data from across the grid — solar generation, EV charging, buildings, storage, and continuously optimises decisions. It can anticipate demand, respond in real time and automate adjustments without human intervention.
Without AI, it becomes extremely difficult to manage this level of complexity efficiently.
Q3. How do you see AI integrating solar, EV charging and battery storage?
I see this integration as the next big leap in the energy system. Solar, EVs and storage are often discussed separately, but in reality, they are deeply interconnected.
During the day, solar generation is high but demand is relatively lower. At the same time, EV charging demand is rising. AI can align these charging EVs when solar power is abundant, instead of drawing power during peak hours. Battery storage plays a critical role here. AI can decide when to store excess solar energy and when to release it, depending on demand patterns.
This creates a fully optimised ecosystem where generation, storage and consumption are synchronised in real time. That is how you build a truly efficient and flexible grid.
Q4. What kind of efficiency gains can India realistically achieve through this approach?
The gains are significant. We have seen that AI can improve efficiency by up to 30% on the same infrastructure.
In India, where losses are still around 15%, compared to 6–8% in more advanced systems, there is a clear opportunity to reduce inefficiencies. AI helps in multiple ways — reducing technical losses, identifying inefficiencies, shifting demand to off-peak periods, and improving utilisation of assets.
It also improves affordability, because when you optimise when and how energy is used, you reduce the overall cost of the system.
Q5. What are the biggest barriers to scaling this AI-led system?
The first barrier is data. “To use AI at scale, you need large-scale data… infrastructure is not fully developed yet.”
The second is digital infrastructure — data centres, connectivity and integration platforms. India is making progress here, with data centre capacity expected to grow significantly, but we are still in the build-out phase. The third challenge is integration. Many parts of the grid still operate on legacy systems, and connecting them to new digital platforms takes time, investment and coordination.
Q6. Can AI reduce the need for large investments in grid and storage?
No, and this is a critical point. AI is not a replacement for infrastructure — it is a multiplier. “You need to do both… reinforce your grid, your battery storage, and your solar capability.”
India’s demand is growing too fast. Even if you optimise the system, you still need to expand capacity, strengthen networks and build storage. AI ensures that these investments deliver maximum value, but it cannot replace them.
Q7. What should policymakers and utilities focus on next?
From my perspective, the direction is already clear. India has taken many of the right policy steps.
The real challenge now is execution. “It’s a matter of speed of execution… not more reform.”
We need to accelerate deployment of solar, batteries and digital systems. Financing will play a key role, especially for distributed energy solutions. The economics are improving returns have come down from around seven years to five — but upfront investment is still a barrier. The opportunity for India is to combine AI, renewables and electrification to build a system that is not only cleaner, but also more efficient and resilient.
“The world needs to use digital technology to make the production of electricity affordable at any point of time.” The path is clear—the question now is how fast India can scale it.