<p><strong>The energy transition is in full swing. Artificial intelligence (AI) can play a key role in this process: from predicting energy consumption and weather patterns to optimizing smart grids and reducing grid congestion. But where opportunities arise, responsibilities also come into play. How do we ensure that AI is used responsibly in the energy sector?</strong></p><p>Linde Franken, a researcher at the University of Twente specializing in ethics and sustainable technology, recently outlined the ELSA aspects (Ethical, Legal, Societal Aspects) of AI in energy systems in a presentation. Her insights are valuable for both entrepreneurs involved in the energy transition and startups developing AI.</p><p><strong>AI: Both an Accelerator and a Consumer</strong></p><p>AI can accelerate the energy transition by enabling more efficient energy use and making better use of renewable sources. At the same time, AI itself also consumes a great deal of energy. Data centers account for a growing share of global energy consumption, and the impact of AI models on CO₂ emissions is significant. This makes it crucial that AI applications are designed with sustainability as a guiding principle. In addition to CO₂ emissions, other environmental impacts are also important here, such as water use and the extraction of minerals for the hardware on which AI systems depend.</p><h1>Energy Justice</h1><p>An important consideration is equity in the energy transition. According to Franken, renewable energy is not inherently equitable, because the benefits and burdens of the energy transition are often not distributed fairly. AI can even exacerbate inequalities if algorithms focus solely on efficiency and costs, or when certain groups are underrepresented in the data used to train AI systems. Consider, for example, the selection of sites for wind or solar farms that disproportionately burden certain communities.</p><p>That is why it is important to consider not only distributive justice—how the costs and benefits are distributed—but also procedural justice: Are all stakeholders truly involved in the development of AI systems, and are their interests taken seriously enough? Transparency, explainability, and inclusivity are key concepts in this regard.</p><h1>Legal Frameworks</h1><p>The European AI Act sets clear requirements. AI applications classified as high-risk—such as those in the energy sector—must always ensure human oversight (“human-in-the-loop”). In addition, there are obligations regarding privacy (GDPR), reporting on societal impact (CSRD), and due diligence in the supply chain (CSDDD).</p><p>For entrepreneurs, this means that investing in AI requires more than just technological innovation: legal compliance and ethical awareness are integral parts of the responsible use of AI in energy systems.</p><h1>From Ethics to Practice</h1><p>Ethically responsible use of AI in the energy transition requires:</p><ul><li><strong>Sustainability as a design principle</strong>: using AI to save energy, not to waste it.</li><li><strong>Linking technology and behavioral change</strong>: technological innovation and human behavior must evolve together. Only in this way can we prevent the environmental benefits of AI from being lost due to so-called rebound effects—for example, when more efficient electric vehicles are actually used more frequently, causing total energy consumption to rise.</li><li><strong>Transparency and explainability:</strong> from “black box” to “explainable AI.” What priorities and potential biases are embedded in the algorithms, and how are decisions made?   </li><li><strong>Inclusivity:</strong> developing with, not just for, citizens and users.</li></ul><p>As Linde Franken emphasizes: “AI applications can contribute to a sustainable energy transition, provided sufficient attention is paid to the ethical, legal, and social dimensions. Only then can we prevent AI from reinforcing existing inequalities and exacerbating injustice.”</p><h1>What does this mean for you as an entrepreneur?</h1><p>There are significant opportunities for SMEs in the energy sector and AI startups. By incorporating ELSA considerations from the outset, companies strengthen their position, mitigate legal risks, and build trust with customers and society. Oost NL and AI-hub Oost-Nederland support entrepreneurs with these types of issues, including through knowledge sharing, networking, and innovation projects.</p><p>The future of energy is smart, sustainable, and equitable—provided we make the right choices.</p><p>Would you like to learn more or join our network focused on AI and the energy transition, as well as (the management of) decentralized energy networks? Visit www.aihub-oost.nl or contact Chris Willemsen (chris.willemsen@oostnl.nl).</p>

ELSA Aspects of AI in Energy Systems: Opportunities and Responsibilities