Can AI save our energy systems before it’s too late?

04 juni, 2025

Artificial intelligence is no longer a distant dream in the energy sector—it’s already reshaping how power is generated, distributed, and consumed. This new policy brief, published by the Stockholm Institute of Transition Economics (SITE) offers insights from SITE Energy Talk 2025 on how AI is helping countries like Ukraine, Sweden, and those in the Baltics build more flexible, efficient, and resilient energy systems.

As flexibility needs and energy security concerns grow, artificial intelligence (AI) is playing an increasingly central role in managing, optimizing, and securing energy systems. At the 2025 Energy Talk: AI and the Future of Energy, organized by the Stockholm Institute for Transition Economics (SITE) in collaboration with Energiforsk, several key experts and innovators showcased how AI is shaping the energy system, from household-level optimization to national infrastructure forecasting and regulation. The discussions highlighted AI’s potential to enhance efficiency, resilience, and user responsiveness, while also raising critical issues around data governance, cybersecurity, and value distribution. This policy brief summarizes the main takeaways from the event.

Key highlights from the policy brief

AI is already used in everything from forecasting power demand to controlling heat pumps in real time. In the Baltics, AI assesses overhead lines and enables real-time grid monitoring for resilience; in Sweden, AI optimizes household heat pumps in real time using live data, boosting home energy efficiency; In Ukraine, machine learning predicts energy use with over 98% accuracy and enables early detection of equipment failures through sound analysis.
AI tools can increase efficiency and reduce waste—but they’re also raising governance concerns. Experts warn that control over algorithms and data must remain transparent, avoiding reliance on “black box” systems owned by unaccountable actors.
Equity and public trust are central to AI’s long-term success in energy. While large industrial users already benefit, experts say regular consumers must also share in the gains if AI is to be widely accepted and legitimate.

Learn more

Meet the authors

Chloé Le Coq: Professor, University Paris-Panthéon-Assas (CRED) & Stockholm Institute of Transition Economics
Elena Paltseva: Associate Professor, Stockholm Institute of Transition Economics
Cecilia Smitt Meyer: Research Assistant, Stockholm Institute of Transition Economic

SOCIAL MEDIA

Follow us on social media to get the latest updates from SITE

Image: metamorworks, Shutterstock

SITE Artificial intelligence Digitalization Energy Environment Sustainability Technology Policy brief

Read the full policy brief

About the FREE Network

Access more FREE policy briefs

Subscribe to our newsletter

About the FREE Network Policy Brief Series

The Forum for Research on Eastern Europe and Emerging Economies (FREE Network) is a joint initiative by SITE (Stockholm), BEROC (relocated to Vilnius), BICEPS (Riga), CenEA (Szczecin), ISET-PI (Tbilisi) and KSE Institute (Kiev).

Together, these research institutes form an extensive network of leading academic experts on economic issues in Central and Eastern Europe and the former Soviet Union. The institutes also conduct research about development, emerging markets, as well as economics in general.

By publishing the weekly FREE Policy Brief Series, these institutes provide short and informative analyses on current economic policy challenges in Eastern Europe and emerging markets. The writings are based on academic research papers or policy work. The ambition of the FREE Network is to bridge the gap between ongoing academic research and policy making, to stimulate and contribute to the international debate as well as to intensify the interaction and discussion with other researchers, policy-makers, and business representatives across the world.