Hitachi’s Role in Advancing AI for Energy Forecasting and Optimization
AI is a key focus in today’s business landscape, with many companies exploring its applications across various domains. In the ETRM space, AI offers transformative potential. For instance, large language models (LLMs) are being adopted for enhanced reporting and streamlined data entry. Generative AI (GenAI) is increasingly applied in simulations, while AI’s capability to process and interpret unstructured data proves valuable in market analysis and back-office operations. Robotic process automation (RPA) further enhances efficiency across diverse business processes.
However, AI and machine learning (ML) are indispensable in areas where massive volumes of data need to be processed. Here, Hitachi offers multiple solutions leveraging these technologies.
I recently had the opportunity to speak with Hugo Stappers, Hitachi’s Global Sales Leader, about company’s advancements in AI. He was enthusiastic about the company’s forecasting solution, Nostradamus AI. Designed specifically for the energy industry, this forecasting platform delivers precise predictions for consumption, production, pricing and more, Hugo told me. As a cloud-native and scalable solution, Nostradamus AI seamlessly integrates with existing systems, making it both easy to automate and highly adaptable to customer needs.
The platform is based on a robust data foundation that combines grid performance metrics, market forecasts, and advanced asset monitoring. Customers can integrate their own data as well as third-party datasets to generate customer specific forecasts for various factors such as load, wind or solar generation, market prices, and other key indicators. According to Hugo, Nostradamus AI supports multiple AI models, ensuring flexibility and precision.
The forecasting process involves training AI models on historical data, optimizing them, and validating their accuracy before applying them to real-world scenarios. Hugo highlighted that Nostradamus AI outperforms many traditional forecasting models, offering forecasts that are over 20% more accurate than standard industry benchmarks.
Beyond forecasting, Hitachi is employing AI in energy portfolio management, encompassing areas such as market insights, asset modeling and optimization, energy trading, and risk management. According to Hugo, AI is rapidly becoming a critical tool for optimizing trading strategies, enhancing flow optimization, and streamlining settlement processes.
With solutions like Nostradamus AI, Hitachi demonstrates its commitment to exploring AI-driven innovations, supporting companies in improving forecasting, trading, and operational efficiency.
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