Artificial intelligence (AI) is critical to the energy sector’s rapid transformation, according to the World Economic Forum (WEF), as the two are inextricably linked amid fast-paced technological innovation and rising environmental responsibility.
There is a growing demand for energy systems that “provide maximum power, minimal emissions and energy security,” the WEF said.
“To meet these goals, the energy sector must undergo a rapid transformation—reducing emissions while delivering reliable, scalable energy to support economic growth,” the WEF said.
“Central to unlocking this potential is artificial intelligence (AI), which offers unprecedented opportunities to revolutionize the production, management and consumption of energy,” it said.
It noted that AI can be a powerful tool in transforming energy production and management. “Through advanced machine learning and data analytics, AI can optimize energy consumption, improve grid resilience and enable smarter, more efficient use of resources,” it said.
The WEF also believes that AI can help accelerate the energy transition. “By enhancing the management and integration of renewable energy sources, AI can stabilize grids, forecast energy demand and minimize waste,” it said.
“Predictive maintenance is another key benefit, as AI can identify potential issues in energy infrastructure before they lead to costly failures, thereby improving the reliability and sustainability of energy systems,” the WEF said.
However, AI consumes vast amounts of energy, and that usage is projected to increase. “By 2030, global power demand from data centers—primarily driven by AI—could increase by 18 to 20 percent annually, reaching over 1,000 terawatt-hours (TWh),” the WEF said.
“This amount is equivalent to nearly a quarter of the United States’ current power demand,” it said.
In April, the US International Energy Agency (IEA) released a report stating that while increased power demand from data centers will also increase emissions, this could be offset by emissions reductions enabled by AI adoption.
“AI is one of the biggest stories in the energy world today—but until now, policy makers and markets lacked the tools to fully understand the wide-ranging impacts,” said Fatih Birol, IEA executive director.
“Global electricity demand from data centers is set to more than double over the next five years, consuming as much electricity by 2030 as the whole of Japan does today,” said Birol.
The IEA said countries wanting to maximize AI need to accelerate new investments in electricity generation and grids, improve the efficiency and flexibility of data centers and strengthen the dialogue between policy makers, the technology sector and the energy industry.
In the Philippines, local energy companies are also leveraging AI. “AI plays a critical role in our organization—not just for improving efficiency, but in strengthening the Philippines’ energy security,” said Emmanuel Rubio, president of Meralco PowerGen Corp.
“It will be essential in managing our growing energy portfolio and advanced energy storage systems. For us, every AI solution we deploy must directly contribute to making power more reliable and affordable for Filipino families and businesses,” said Rubio.
Rubio said the Philippine energy industry faces a “very real and very urgent challenge: balancing our renewable energy transition with the continuing need for reliable baseload power.”
He noted that aging infrastructure is a reality, as around 70 percent of large transformers worldwide have been in service for more than 25 years.
“Integrating renewables brings intermittency challenges that traditional forecasting just cannot handle,” Rubio said.
“And every unplanned outage is not just a financial cost—it’s a disruption to millions of lives. This is where AI is changing the game,” he said.
Rubio cited examples of AI-based systems already in use. Siemens’ generative AI for predictive maintenance has shown an 85-percent improvement in downtime forecasting and halved unplanned outages, while Google DeepMind’s wind forecasting system can predict output with remarkable precision by analyzing weather patterns.
He said the Argonne National Laboratory’s AI can pinpoint the remaining useful life of grid components—down to the year, month, or even week—across millions of assets.
“These are not distant possibilities. These are real systems, operating today, and they show us what’s possible when we embrace AI strategically. Our responsibility as leaders in Philippine energy,” he said.
Rubio said MGEN is in the middle of an ambitious expansion—doubling the current energy capacity in its portfolio. He noted that the company’s MTerra Solar, with 3,500 megawatts of solar and 4,500 megawatt-hours of energy storage, will be the largest renewable energy project once fully commissioned.
“But as I have said before, there is no one-size-fits-all solution for energy security,” he said. “We cannot afford to be technology-agnostic. We must remain open to emerging solutions, carefully weighing their role in balancing reliability and sustainability.”
The Transition Business Group (TBG) of Aboitiz Power Corp. s also investing heavily in AI.
The company recently announced a strategic initiative to expand the application of AI and data analytics to its coal-fired power plants in Luzon and Visayas. The move is a continuation of “Project Arkanghel,” which modernizes the company’s existing conventional power plants into smart ones, helping ensure plant availability and reliability. The full implementation of the project will be rolled out in phases.
“The first phase of Project Arkanghel is up and running, currently in one of our circulating fluidized bed plants in Mindanao,” said Celso Caballero III, AboitizPower TBG president and chief operating officer, referring to the 300-megawatt Therma South Inc. in Davao City.
“We’re completing implementation in the Visayas this year and moving to Luzon next year,” he said.
The 340-megawatt Therma Visayas Inc. in Toledo City, Cebu, was also named as one of the pioneer models for Project Arkanghel, while a site for Luzon has yet to be identified.
Project Arkanghel features establishing a Unified Operations Center equipped with digital twin technologies, early warning and anomaly detection systems, and an end-to-end live asset health monitoring system. This center enables engineers to anticipate potential issues and optimize plant operations.
AI-based systems have the potential to help maximize the efficiency of plants, which means lower heat rates, better fuel efficiency, reduced outage days, and longer intervals between planned outages. With this data-driven intelligence, these systems enable engineers to make bolder and more accurate decisions.
The expansion of Project Arkanghel to AboitizPower’s coal plants in Luzon and Visayas is a pragmatic step in the company’s balanced energy mix strategy. It acknowledges the immediate need for stable, dependable, and cost-effective baseload power while renewable energy capacities continue to grow.
