How AI and IoT Are Making the Grid Smarter

Utilities take advantage of this by monitoring virtually every aspect of power generation, distribution and consumption using sensors that predict component failures, controllers that automatically reroute power from point to point, and smart meters that closely track customer usage and trends. Processing that much information is far beyond human computational capabilities, so utilities are relying on the IoT and artificial intelligence (AI) to make the grid more user-friendly, reliable, flexible, secure and profitable. Two years ago, our local power company installed smart meters in the area. Shortly after, they offered customers a choice of keeping their current flat electric rate or switching to a time-of-use model, where the cost of electricity varies, hour-by-hour, depending on supply and demand. During high-demand hours--usually midafternoon through the early evening--rates are higher.