Can artificial intelligence (AI) make our energy systems smarter, safer, and more sustainable? In our interview, Nelson Pinho, Global Head of Digital and AI at EDP, shares how artificial intelligence is already transforming grid operations, forecasting, and decision-making — and why the biggest potential is yet to be seized.
The energy sector is undergoing a profound transformation, where every decision has a direct impact on system efficiency, decarbonization, and resilience. In this context, digitalization and artificial intelligence (AI) are emerging not as supporting tools, but as fundamental enablers of change. By transforming data into actionable insights, AI empowers utilities to optimize asset performance, predict consumption patterns, and integrate variable renewable sources at scale.
At EDP, we are actively deploying AI across key areas such as smart grids, distributed energy resources, energy storage, and sustainable mobility. These applications are powered by technologies like IoT, machine learning, and big data analytics, and are helping us build an energy system that is not only smarter, but also more sustainable, resilient and customer-centric.
Grid modernization is one of the greatest challenges of our time. As energy systems become more decentralized and multi-directional, traditional infrastructure must evolve to handle this new level of complexity. AI plays a central role in enabling this transformation. Through predictive analytics, it can anticipate maintenance needs, optimize network flows, and detect anomalies in real time.
At EDP, we have implemented over 300 data- and AI-driven solutions across our business units, with more than 50 additional use cases in development. These include demand forecasting, smart asset management, grid congestion mitigation, remote operations and automation of critical operations. By embedding AI into the very fabric of our operations, we are not just upgrading infrastructure — we are future-proofing it.
Forecasting has become both more important and more complex in the context of increasing renewable penetration. Solar and wind energy, while essential for decarbonization, introduce variability that challenges the stability of the grid. AI helps us navigate this complexity with precision.
Machine learning models can analyze vast datasets — including historical production, weather forecasts, and real-time sensor data — to improve both short- and long-term forecasts. For example, we have seen forecasting errors for solar generation reduced by up to 30 percent. AI also enables load forecasting at the level of individual substations, supporting demand-side flexibility programs and dynamic line rating to reduce renewable energy limitations.
In hydro, we use AI to model river flows and climate patterns, optimizing generation while also improving dam safety and water resource planning. These innovations are essential to enhancing the flexibility and reliability of the grid in a renewable-led future.
EDP has built a long-term roadmap anchored in seven strategic AI focus areas — our “BigBets” — designed to solve both present and future challenges. These include:
These BigBets are not isolated initiatives — they form a cohesive strategy to make AI a core pillar of our innovation and value creation.
The AI transformation is as much about people as it is about technology. It is redefining roles, reshaping decision-making, and elevating the importance of creativity, adaptability, and critical thinking. Companies must therefore invest in reskilling and upskilling their workforce to harness this potential.
At EDP, we believe that AI should amplify human talent. We are implementing learning programs tailored to different profiles, fostering partnerships with academic institutions, and promoting a culture of continuous learning. As highlighted in a BCG study, organizations that succeed in AI typically invest 30 percent in technology and 70 percent in people and processes. We take that insight seriously, but there is still a lot to do.
We envision a future where humans and AI work side by side — where technology augments intuition and frees people to focus on value-adding tasks. This is the workforce of tomorrow, and we are building it today.
As digital transformation accelerates, so too does the risk of cyberattacks. AI is a powerful ally in this domain, capable of enhancing threat detection, accelerating incident response, and continuously adapting to evolving attack vectors.
For example, companies can use security copilots to automate threat detection and vulnerability management. By analyzing massive data streams in real time, AI can identify anomalies, flag potential breaches, and recommend remediation actions — often before a human analyst would notice.
AI also plays a key role in resilience: not just detecting threats, but helping organizations anticipate and withstand them. This is fundamental in the energy sector, where resilience and reliability are non-negotiable.
AI is no longer a promise of the future — it is a reality shaping our present. And yet, we are only scratching the surface of its potential. In the coming years, AI will drive the creation of autonomous, self-healing grids, hyper-personalized energy services, and integrated energy communities. It will empower consumers to become active participants in the energy system and give operators real-time control over increasingly complex networks.
But this future is not only about algorithms. It is about people. The real power of AI lies in how we combine it with human intelligence — with creativity, empathy, and ethical judgment. We must ensure that AI is developed and used responsibly, guided by clear values and transparent governance.
At EDP, we are committed to building this future: a future where technology enhances talent, where energy systems are clean and resilient, and where progress is sustainable for all. The potential is immense — and we must be ready to seize it.
Would you like to learn more about how digitalization and artificial intelligence are transforming our energy systems? Then don’t miss the four conferences taking place as part of The smarter E Europe on May 6–7, 2025 in Munich!
One highlight is the session Utility-Scale Solar Power II: Digitalization & AI Transforming the Industry at the Intersolar Europe Conference, featuring Ana Felício from the Planning & Execution Office at EDP.
The session Innovation and Digitalization at the EM-Power Europe Conference will feature a critical discussion on the future of European innovation and industry, focusing on the implementation of these emerging technologies and their role in shaping the next phase of industrial transformation
By the way, just one ticket grants you access to the Intersolar Europe Conference, the ees Europe Conference, the Power2Drive Europe Conference, and the EM-Power Europe Conference.
