Latent Information in the Evolving Energy Structure: The Intersection of Artificial Intelligence Development and Social Progress

Latent Information in the Evolving Energy Structure: The Intersection of Artificial Intelligence Development and Social Progress

Boqiang Lin (School of Management, China Institute for Studies in Energy Policy, Xiamen University, China) and Yitong Zhu (School of Management, China Institute for Studies in Energy Policy, Xiamen University, China)
Copyright: © 2024 |Pages: 21
DOI: 10.4018/JGIM.358476
Article PDF Download
Open access articles are freely available for download

Abstract

Recent studies indicate that Artificial Intelligence (AI) technology, characterized by its integration of information and communication technology attributes, exerts a multifaceted influence on the energy system. The authors employ Difference-in-Differences (DID) and Triple-Difference (DDD) models to investigate the effects of AI. The research initially demonstrates that AI may exhibit dual attributes of constraining energy structure. Specifically, the rapid development of AI tends to increase the proportion of fossil fuel-based electricity generation while optimizing the consumption of renewable energy. Furthermore, the degradation of energy structure stems from the surge in electricity consumption by AI, which the renewable energy consumption capacity is unable to satisfy. Lastly, industrial agglomeration effects and the construction of the digital economy have positive impacts on development of renewable energy; technological innovation aids in mitigating the negative shocks to the energy structure. This study provides a new perspective on the role of AI technology in energy transition.
Article Preview
Top

1. Introduction

Under the dual pressures of the global economy and the environment, energy transition has become an issue driving sustainable development (Hall and Vredenburg, 2003; Song et al., 2020; Swilling et al., 2022). With the excessive extraction and consumption of fossil fuels, as well as their profound impact on climate change, the construction of a clean and low-carbon energy system is urgent (Kabeyi and Olanrewaju, 2022; Siciliano et al., 2021). The energy transition encompasses not only the optimization of energy structures but also necessitates innovation in economic models, the promotion of technological advancements, and the transformation of social operational modes (Su et al., 2023). This historic shift aims to achieve a smooth transition from reliance on non-renewable energy sources such as coal and oil to renewable sources like wind and solar energy, ensuring the security of energy supply and the sustainability of the environment (Omer, 2011; Prasad et al., 2021). In this context, digital and intelligent technologies are highly anticipated due to their demonstrated potential for enhancing energy production efficiency and reducing energy consumption intensity, thereby offering new perspectives and tools for the energy transition (Xu, 2024). Digital and intelligent technologies are considered cutting-edge for improving production efficiency and reducing energy intensity (Liu et al., 2023; Ye et al., 2024). AI plays a pivotal role by enabling real-time monitoring, predictive analytics, and advanced diagnostics of wind turbines and solar photovoltaic systems. These capabilities not only streamline the generation and distribution of energy but also pave the way for proactive maintenance, thereby minimizing downtime and maximizing the overall efficiency of renewable energy infrastructure (Dogo et al., 2019; Liu et al., 2021). Moreover, AI-driven intelligent control strategies have proven to significantly enhance the power generation efficiency and reliability of these systems. By optimizing operational parameters and automating decision-making processes, AI contributes to a more resilient and sustainable energy grid. This integration of AI also facilitates the integration of renewable energy with smart grids, enhances demand-side management, and supports the transition towards a decentralized and decarbonized energy future (Pappas et al., 2023).

Research indicates that AI technology, which underpins the era of Industry 4.0, may potentially inhibit energy transition (Fan et al., 2023; Vinuesa et al., 2020). As a pioneering technology driving the technological revolution, the role of AI in enhancing energy efficiency and optimizing energy production is unequivocal (Xie and Yan, 2024). However, the deployment of AI technology requires substantial electricity consumption. The operation of AI is contingent upon extensive data processing, which necessitates substantial computational power typically provided by servers and storage devices in data centers. The continuous operation of these devices consequently incurs significant electricity consumption (Zamponi and Barbierato, 2022). Additionally, advancements in technology often lead to reduced energy costs, which may, paradoxically, stimulate additional energy demand (Du et al., 2023; Han and Zhou, 2024). This phenomenon, known as the Energy Rebound Effect, highlights the need for a nuanced perspective when evaluating AI’s impact on the energy transition. While it is crucial to acknowledge AI’s positive contributions to promoting clean energy utilization and improving the efficiency of energy systems (Wang et al., 2023), it is equally important to address the potential energy consumption issues that may arise from implementing AI technologies (Kong et al., 2023).

Complete Article List

Search this Journal:
Reset
Volume 33: 1 Issue (2025)
Volume 32: 1 Issue (2024)
Volume 31: 9 Issues (2023)
Volume 30: 12 Issues (2022)
Volume 29: 6 Issues (2021)
Volume 28: 4 Issues (2020)
Volume 27: 4 Issues (2019)
Volume 26: 4 Issues (2018)
Volume 25: 4 Issues (2017)
Volume 24: 4 Issues (2016)
Volume 23: 4 Issues (2015)
Volume 22: 4 Issues (2014)
Volume 21: 4 Issues (2013)
Volume 20: 4 Issues (2012)
Volume 19: 4 Issues (2011)
Volume 18: 4 Issues (2010)
Volume 17: 4 Issues (2009)
Volume 16: 4 Issues (2008)
Volume 15: 4 Issues (2007)
Volume 14: 4 Issues (2006)
Volume 13: 4 Issues (2005)
Volume 12: 4 Issues (2004)
Volume 11: 4 Issues (2003)
Volume 10: 4 Issues (2002)
Volume 9: 4 Issues (2001)
Volume 8: 4 Issues (2000)
Volume 7: 4 Issues (1999)
Volume 6: 4 Issues (1998)
Volume 5: 4 Issues (1997)
Volume 4: 4 Issues (1996)
Volume 3: 4 Issues (1995)
Volume 2: 4 Issues (1994)
Volume 1: 4 Issues (1993)
View Complete Journal Contents Listing