California to pioneer AI for managing power grid outages

California's statewide power grid operator, the California Independent System Operator (CAISO), is set to become the first in North America to deploy artificial intelligence (AI) for managing power outages. The pilot program, announced at the DTECH Midwest utility industry summit, will use Genie, an AI software developed by energy-services giant OATI. The software leverages generative AI to analyze outage reports in real-time and could eventually automate key grid functions.

Current Challenges and AI Solutions

Currently, CAISO engineers manually scan outage reports for keywords, read notes, and input data into the grid software—a time-consuming process. "Even if it takes you less than a minute to scan one on average, when you amplify that over 200 or 300 outages, it adds up," says Abhimanyu Thakur, OATI’s VP of platforms. Genie consolidates this process, using AI to scan reports and generate proactive analyses.

Potential for Broader Automation

If successful, CAISO may expand AI's role in grid management. "After a few rounds of testing, I think we’ll have an idea about what is the right time to call it successful or not," says Gopakumar Gopinathan, a senior advisor at CAISO. The move reflects a broader shift in the industry, as most grid operators still rely on decades-old systems.

Industry Trends and Global Examples

• PJM Interconnection, the largest U.S. grid operator, recently partnered with Google to use AI for regional planning (source).
• ERCOT, Texas’ grid operator, is considering similar AI adoption.
• Australia already uses AI to manage rooftop solar power flow in New South Wales (source).

The Bigger Picture

While much attention has focused on AI's energy demands, experts highlight its potential to modernize grids. "We’ve been talking a lot about what the grid can do for AI and not nearly as much about what AI can do for the grid," says Charles Hua, a coauthor of a Department of Energy report (source).

Cautious Optimism

CAISO remains cautiously optimistic. "I don’t want to overhype it," says Gopinathan, but he envisions a future where "AI agents are able to do a lot more."

This pilot program marks a significant step toward a more resilient and automated power grid.