Governing AI in Electricity Systems: Reflections on the EU Artificial Intelligence Bill.

Area of Science:

• Energy Policy
• Artificial Intelligence Governance
• Socio-technical Systems

Background:

• The European Commission's Artificial Intelligence (AI) Act proposal (April 2021) is a significant development in AI governance.
• The electricity sector faces unique societal and governance challenges due to AI integration, particularly for system operators.

Purpose of the Study:

• To assess the adequacy of the EU AI Act in addressing AI-related risks within the electricity sector.
• To identify AI applications and associated risks for electricity system operators.

Main Methods:

• Analysis of the EU AI Act proposal in the context of electricity sector applications.
• Identification of AI use cases for grid management, flexibility asset management, and market activities.
• Evaluation of risks including transparency, human autonomy, cybersecurity, market dominance, and price manipulation.

Main Results:

• The proposed AI Act effectively addresses transparency and responsibility clarification.
• The Act inadequately covers risks concerning human autonomy, cybersecurity, market dominance, and price manipulation in the electricity market.

Conclusions:

• The EU AI Act provides a foundation for AI governance in the electricity sector but requires enhancements.
• Specific governance suggestions are proposed to mitigate the identified gaps concerning critical risks for system operators.