Schneider Electric has recently published two significant reports from its Sustainability Research Institute (SRI), addressing the implications of artificial intelligence (AI) on energy consumption.
Unveiled during the International Energy Agency's (IEA) Global Conference on Energy & AI, the first report, titled Artificial Intelligence and Electricity: A System Dynamics Approach, explores four potential scenarios for AI's electricity consumption over the next decade.
This research, led by Rémi Paccou, director of SRI, and Prof. Fons Wijnhoven from the University of Twente, utilises a system dynamics model to forecast various outcomes based on different AI development paths. The scenarios range from Sustainable AI Development to Limits to Growth, and even more extreme possibilities such as Abundance Without Boundaries and potential Energy Crises driven by AI.
These scenarios are designed not as predictions but as frameworks to understand the complex factors influencing future energy consumption patterns and to guide policymakers in developing sustainable strategies.
The report concludes that sustainable AI should essentially be the result of efficiency, frugality, and demonstrable impact. Conversely, unrestricted abundance can disrupt mutiple systems, hinder decarbonization, and lead to waste. Furthermore, mismatches between energy demand and infrastructure can cause local shortages with global ripple effects.
The second report, AI-Powered HVAC in Educational Buildings: A Net Digital Impact Use Case, focuses on the application of AI in heating, ventilation, and air-conditioning (HVAC) systems. This study highlights the significant energy consumption of HVAC systems, which can account for 35% to 65% of total building energy use.
By analysing over 87 educational properties in Stockholm from 2019 to 2023, the researchers found that AI integration led to a reduction of 65 tonnes of CO2 emissions per year, which is approximately 60 times the carbon footprint of the AI system itself.
The report suggests that similar implementations in cities with higher energy demands, such as Boston, could yield even greater carbon savings—up to seven times more than in Stockholm.
Vincent Petit, SVP of Climate and Energy Transition Research at Schneider Electric, remarked, “The release of our reports comes at a crucial time, as the IEA conference highlights the transformative power of AI in the energy sector. As a company and as researchers, we are committed to keep shaping the future of energy and climate solutions”.
The reports underscore the dual potential of AI to both challenge and enhance energy sustainability, providing critical insights for future developments in energy management.
