Government sets out vision for AI-enabled clean energy system as landmark review is published

This week, Lucy Yu's independent review into AI deployment in electricity networks, "The Grid We Need Now", was published alongside Government's "Vision for an AI-enabled clean energy system". Together, these two publications represent a significant milestone in policy development relating to how AI is applied within energy, ahead of a strategy from Government due later this year (2026). At the heart of each of them is a recognition that AI has the potential to transform how the energy system is planned, operated, and governed - with benefits ranging from lower costs and improved consumer experience to reduced emissions and better use of existing infrastructure.

Lucy Yu's independent review into AI deployment in electricity networks

Announced last December (2025), this review aims to understand how AI can be applied in electricity networks most effectively – in the widest range of forms, for the widest set of applications. It focuses on four high impact areas:

How to change the underpinning rules for operating the grid to make fullest use of AI to run it more effectively

How to ensure AI applications deliver tangible benefits for domestic and business consumers

How to prepare the grid and wider system to make responsible use of AI’s potential future capability for autonomy

How to streamline testing and deployment so that AI solutions can make a difference in the grid more quickly

Key recommendations include:

A risk-aware system: Government should set a strategic intent to move to full probabilistic, risk-based grid operations by 2035 and planning by 2036, and set out a roadmap for implementation as part of its upcoming AI for energy strategy; NESO should work with networks to develop probabilistic risk modelling of grid operations by 2030.

A consumer centred system: Government should work with NESO and researchers to create a shared capability for system-level testing of agentic AI systems; Government and Ofgem should review cost recovery mechanisms for network and policy costs to ensure they remain efficient and fairly distributed as AI optimisation becomes widespread.

An autonomous system: Government should work with industry to agree a clear framework for defining autonomy in the grid by H1 2027; Ofgem should work with industry to identify an AI use case for which moving up the delegation levels is desirable, and use this to develop best practice for doing so effectively at appropriate pace.

Getting AI into the system: Ofgem should redesign digitalisation incentives and funding to reinforce network-wide continuous implementation, investment, and improvement in AI, by 2028; Ofgem should use its powers under the Data Best Practice Guidance to drive greater interoperability and standardisation of granularity and latency by H1 2027.

Government's Vision for an AI-enabled clean energy system

Government's long-awaited Vision precedes the UK’s first AI for Clean Energy Strategy, which will serve as a response to Lucy Yu's review and an identification of next steps such as changes to funding, legislation or regulation.

This Vision sets out:

Primary use cases, such as system optimisation and operation; asset planning, operation and maintenance; end-use efficiency and demand management; and energy innovation and R&D.

Principles for deployment, namely 1) lowering bills for households and businesses, 2) increasing the efficiency of the system and supporting decarbonisation, and 3) ensuring energy security.

Barriers to near-term adoption, including access to data; innovation, markets, and incentives; regulation and governance; risk, security, and trust; technical systems integration; and capability, people, and culture.

Characteristics, governance, and risks of longer-term transformative change. Such a future relies on autonomous, distributed decision-making; embedded control; continuous optimisation across timescales; convergence of functions; and learning over time. Risks such as fairness; accountability and liability; uneven adoption and fragmentation; and human judgement and skills erosion must be addressed.

Government has also included a high-level Call for Evidence within this Vision, which techUK will be responding to. The deadline is 6 November.

Please get in touch with [email protected] if you would like to contribute to the response:

Katie Davies

Head of Energy and Infrastructure Policy, techUK

Smart Infrastructure and Systems Programme activities

techUK champion the role of technology in driving positive outcomes in our built infrastructure; from hitting net zero goals to improving safety. In doing so, we also optimise the commercial and regulatory landscape to ensure innovation in infrastructure can flourish. Visit the programme page here