Siemens: AI & Grid Software Essential to Clean Energy Growth

More than seven in 10 senior executives working in the energy sector consider digital technologies such as AI, grid software and smart meters to be crucial for facilitating the energy transition, research from Siemens says.

The Infrastructure Transition Monitor 2025, which gathered insights from 1,400 executives spanning various industries, indicates that resilient energy supply has emerged as the primary policy focus for governments, climbing from third position in 2023.

Those surveyed reported advancement across various infrastructure transition objectives, with almost double the number characterising themselves as "mature or advanced" when compared to 2023 in domains such as national energy independence, large-scale energy storage expansion and renewable energy deployment.

Regulatory barriers to grid modernisation

Nearly two thirds of those surveyed identify regulatory, political and economic uncertainty as primary threats to advancement.

Sabine Erlinghagen, CEO of Siemens Grid Software, believes that certain regulatory challenges are hindering the modernisation of power grids around the world.

"Regulation still favours copper over software – capital over operational expenditure," she says.

"Add to that the strict separation of retailers and grid operators, which prevents the grid operator from being close enough to customers to assess demand and flexibility opportunities."

Confidence in national decarbonisation strategies has risen substantially, with 63% of participants indicating their country has an effective plan, compared to 47% in 2023.

Managing distributed energy resource integration

The increasing integration of distributed energy resources including solar panels and electric vehicles is generating visibility challenges for grid operators, particularly across low-voltage networks.

Dr G Ganesh Das, Chief of Collaboration and Innovation at Tata Power Company, says: "Demand patterns, per capita consumption and customer expectations have changed drastically.

"That's encouraged utilities to adopt digital tools, optimise supply-demand gaps and predict consumer behaviour. It's a shift from being reactive to proactive."

Three quarters of energy respondents consider that AI is already strengthening infrastructure resilience.

Thomas Kiessling, CTO of Siemens Smart Infrastructure, described the emerging concept of autonomous zones where software responds to real-time inputs.

"If there's no wind but plenty of sun, the system can ramp up EV charging to avoid curtailing solar," Thomas says.

Building new flexibility markets

Daniela Haldy-Sellmann, SVP at SAP, believes that developing new market structures is of the highest importance.

"We're not just building infrastructure anymore. We're building flexibility markets," she says. "That's the only way to respond fast enough, cost-effectively, across borders."

The research found that 63% of participants believe the benefits of autonomous grid systems outweigh the costs, whilst 62% indicate their region is ready to implement such systems.

The fragmentation of platforms, systems and standards continues to represent a considerable obstacle to the comprehensive implementation of autonomous grids.

Most participants consider that different components of the energy system should be managed as a single coordinated whole, necessitating enhanced collaboration between government, utilities and technology providers.