This study evaluates the impact of Artificial Intelligence (AI) applications in power systems on energy security and to determine relevant policy implications. We use a mixed methods approach to analyze the benefits and risks associated with AI implementation on the European power grid, focusing on four key dimensions of energy security: availability, affordability, accessibility, and acceptability.

We investigated the benefits of AI using PyPSA, a Python-based model of the European electricity system. Three AI applications were parametrized: load reduction, load shifting, and wind wake steering. We compared scenarios in which these AI applications are widely deployed against a baseline scenario without these applications to determine if AI improves energy security.

The study also analyzes risks associated with AI deployment in the power grid. We developed a risk taxonomy centered around six high-level categories: cybersecurity, jurisdictional or sovereignty issues, unexplained or unexpected actions by the model, unethical or illegal decision-making, reliance and trust in decision-making, and supplier dependency and vendor lock-in. Additionally, we conducted a back-casting exercise with subject-matter experts to determine positive and negative future outcomes of AI deployment and identify actions to create positive outcomes and avoid negative ones.

The paper presents a set of policy implications for AI on the European synchronous grid. We find that AI applications can improve energy security in power systems. In the scenarios we tested, behind-the-meter applications have a greater impact on energy security than front-of-meter applications. The results suggest that AI applications targeting energy consumption may significantly improve energy security metrics.

Keywords: Energy Security, AI, Power Grid, European Electricity System