China seeks scalable AI models to support the electricity sector – A greener life, a greener world

By Cui Qiwen

China is seeking to identify scalable artificial intelligence (AI) models to integrate into its energy system as part of its broader “AI+” industrial strategy.

Last month, the National Energy Administration (NEA) issued a notice calling for “AI+ energy” pilot projects. The document states that it is soliciting high-value application scenarios from provincial governments and state-owned enterprises. Projects that make the shortlist could receive state funding and may eventually help shape industry standards.

Integrating AI into power grids

The notice builds on another AI-energy strategy released by NEA in September. This included a plan to deploy at least five specialised large-scale AI models across sectors such as power grids and generation, oil and gas, and coal by 2027, along with at least ten replicable demonstration projects.

In that strategy, the NEA outlined eight priority areas for AI integration in the energy sector. These are primarily centred around applying AI to the optimisation of electricity systems. Top priorities include using AI to plan and design power grids, as well as to support repairs.

Forecasting the output of renewable energy 

AI is also expected to support virtual power plant operations and forecasting of renewable-energy output. Other focus areas include autonomous control and decision-making in coal production operations, management of hydropower and thermal plants, and nuclear safety monitoring. 

The initiative may also aim to avoid the excessive competition that led to mass layoffs and market contraction in the solar, wind and EV battery industries. The notice states that successful pilots from energy companies that “avoid redundant investment” in AI systems will be promoted to help other such companies.

Leading the AI race

Since 2024, “AI+” has been written into China’s annual government work report, which sets goals and directions. A number of provinces have also rolled out their own AI industry policies.

China now has more than 4,700 AI companies and nearly 200 commercial generative AI models, with over 600 million registered users, according to People’s Posts and Telecommunications News. 

However, research by data consultancy iResearch shows that demand is still largely driven by state-owned enterprises, which are also the main source of capital behind China’s AI boom: 34.3% of funding for model development comes from government use, whilst 11.1% comes from the energy sector.

First published in Dialogue Earth.