How AI is empowering renewable energy in Australia

Infosys Australia

By Raja Shah, EVP and Industry Head, Global Markets, Infosys
Thursday, 18 September, 2025


How AI is empowering renewable energy in Australia

Queensland has cut energy wastage by 15% and improved renewable power delivery with the help of AI-enabled smart grids. By using AI-powered sensors to monitor and optimise conditions for biogas production, a bioenergy plant in Western Australia has increased energy yield by as much as 25%.

At the Bundaberg Bioenergy Project, sophisticated algorithms analyse agricultural waste composition in real time to adjust processing parameters and maximise energy yield, improving energy production efficiency by 35%. Across the continent, artificial intelligence technology is playing a pivotal role in taking Australia to its target of net zero by 2050.

Local governments are leading the way. Merri-bek City Council has been working with Moreland Energy to reduce greenhouse gas emissions and improve energy efficiency within the community. The City of Melbourne is also setting up solar and battery storage systems in public buildings as part of its ‘Power Melbourne’ project. AI is enabling such initiatives by automating energy management to lower consumption, optimising battery and solar systems, and providing various insights to drive sustainability.

Across Australian cities, smart grid systems are using machine learning algorithms to monitor and streamline the distribution of energy from large renewable energy installations to meet demand in real time. The models analyse a host of historical usage data as well as current information, about temperature conditions or special requirements for example, to predict demand. Further, AI-enabled systems optimise energy resources and cut waste during peak production time (for example, when the sun is out) by automatically sending excess energy to be stored or to power high-consumption activities. Conversely, during peak consumption hours, the systems draw from battery, wind and solar energy sources to meet demand.

By predicting demand based on analysis of consumption habits, weather patterns, etc, AI is transforming the way Australia’s power grid manages and distributes renewable energy. AI-driven smart grid management enables real-time load balancing — adjusting distribution according to demand — to not only improve energy delivery but also support the integration of renewable energy sources with the existing grid. Intelligent drones are revolutionising renewable energy infrastructure inspection by using thermal imaging and pattern recognition to survey installations and identify potential problems that might be overlooked during manual inspection. By enabling proactive maintenance of facilities, the technology has greatly improved the reliability of renewable energy while moderating operating costs.

When integrated with smart grids and devices, AI can automate load shifting, that is, shifting energy consumption so as to optimise usage, or reducing grid load by moving activities, such as electric vehicle charging, to off-peak hours. By optimising energy consumption patterns, AI reduces the strain on the grid, enhances grid stability and saves energy expenses.

In smart cities across Australia, sensors are monitoring public infrastructure — from buildings to traffic management systems — to make instant decisions about how to distribute energy. For example, based on occupancy, they automatically adjust room temperature settings to maintain comfort. AI-managed renewable energy networks have reduced energy consumption by as much as 30% in certain districts.

Artificial intelligence technology is also driving novel business models, such as energy performance contracts, where an energy services company (ESCO) and a building enter an agreement to make energy-saving improvements that the building pays for through the savings that are guaranteed by the company. Although energy performance contracts are best suited to large buildings and complexes, they can also benefit small enterprises which can optimise energy consumption without making capital investments in energy infrastructure.

Australia’s renewable energy sector has found an invaluable ally in artificial intelligence technology. From accurately predicting energy demand, to streamlining generation and distribution, to enabling proactive maintenance of assets, managing grid functions, and recommending ways to improve energy efficiency and eliminate waste, AI is transforming every aspect of sustainable energy management in the journey to net zero.

Image credit: iStock.com/VLADGRIN

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