IEA Report on Artificial Intelligence (AI)

Why in News?

Recently, the International Energy Agency (IEA) released its comprehensive report on Artificial Intelligence (AI) and its role in shaping global energy systems.

Key Highlights

Rising Energy Demand from AI and Data Centres

By 2030, global data center energy demand could reach 945 terawatt-hours (TWh).
Data centres, which power AI training and deployment, are becoming major consumers of electricity.

AI’s Role in Energy Optimization

Oil & Gas Sector: AI enhances exploration and production and helps in detecting methane leaks via satellite monitoring, enabling faster and more targeted repairs.
Power Sector: AI is used to optimize fossil fuel plant operations, especially natural gas plants, thereby improving efficiency and reducing emissions.
Industrial Sector: AI improves manufacturing processes, such as in cement production, achieving over 2% energy efficiency gains.
Transport Sector: AI-driven tools improve route planning and driving behavior, enhancing vehicle efficiency by 5–10% and reducing emissions.

Role of Renewable Energy in AI Expansion

Nearly 50% of the increase in electricity demand from data centers is expected to be met through renewable sources, with natural gas and nuclear power also contributing.
This reflects a shift toward sustainable energy systems even as AI-driven infrastructure expands.

Prelims Practice Question

Q. With reference to the recent International Energy Agency (IEA) report on Artificial Intelligence and energy, consider the following statements:

AI can help reduce emissions in the oil and gas sector by detecting methane leaks.
All future data centre energy demands are projected to be met exclusively by renewable energy sources.
AI can enhance industrial efficiency and reduce emissions in manufacturing processes.

Which of the statements given above is/are correct?

A. 1 and 3 only

B. 2 and 3 only

C. 1 only

D. 1, 2 and 3

Answer: A. 1 and 3 only

Explanation:

Statement 1 is correct – AI enables methane leak detection via satellite monitoring.

Statement 2 is incorrect – Only half of the demand is projected to be met by renewables; natural gas and nuclear also contribute.

Statement 3 is correct – AI improves efficiency in manufacturing, such as cement production.