Lower Power Cost for Consumers Will Be Success of AI, Renewable Energy Convergence, Says Govt Official

Why It Matters

Reduced electricity prices will sharpen industrial margins and accelerate prosumer participation, driving faster AI‑enabled renewable adoption across India and the region.

Key Takeaways

• India’s renewable capacity reaches ~520 GW, 35 GW distributed.
• AI expected to cut consumer power costs within 2‑3 years.
• Lower electricity prices will enhance industrial competitiveness.
• Prosumer empowerment drives decentralized renewable growth.
• AI seen as development infrastructure, not just technology.

Pulse Analysis

India’s renewable energy portfolio has surged past 520 GW, with distributed generation contributing roughly 35 GW. This scale provides a fertile testing ground for artificial intelligence to optimize generation, forecasting, and dispatch. Government officials argue that the true measure of AI‑renewable convergence will be a tangible decline in retail electricity tariffs, which historically have hindered industrial expansion. By leveraging AI‑driven analytics, utilities can better match supply with demand, reduce curtailment, and pass savings onto consumers, setting the stage for a more price‑competitive power market.

AI’s value proposition extends beyond forecasting; it reshapes the distribution network that traditionally suffers from latency and limited visibility. Machine‑learning models can predict equipment failures, automate voltage regulation, and orchestrate micro‑grid operations, turning thousands of small‑scale assets into a coordinated virtual power plant. This digital layer empowers households to become prosumers, feeding excess solar into the grid while receiving dynamic price signals. Such citizen‑centric platforms, highlighted at the AI Impact Summit, illustrate how data‑rich environments accelerate renewable integration without massive new infrastructure.

For businesses, lower power costs translate directly into higher margins and greater global competitiveness, especially for energy‑intensive sectors like steel, chemicals, and textiles. Investors are increasingly viewing AI‑enabled renewable ecosystems as low‑risk, high‑return opportunities, prompting a wave of green financing and venture capital into smart‑grid startups. Policymakers must address challenges in asset maintenance and regulatory harmonization to sustain momentum. As AI matures into a development infrastructure, its synergy with renewable energy is poised to reshape India’s industrial landscape and influence regional energy strategies.

Lower power cost for consumers will be success of AI, renewable energy convergence, says Govt official

Source: PTI · Feb 16 2026, 07:28 PM IST

The convergence of AI and renewable energy will be successful when power costs decrease and industrial competitiveness rises, according to a government official.

The success of artificial intelligence and renewable energy convergence will be when the overall power cost comes down, and industrial competitiveness goes up, a government official said on Monday.

India has been significantly adding renewable energy capacity, and the country's total capacity is around 520 GW.

There is also around 35 GW of distributed renewable energy capacity.

JVN Subramanyam, Joint Secretary at the Ministry of New and Renewable Energy (MNRE), said artificial intelligence (AI) is going to be a game‑changer, especially for distributed renewable energy.

He was participating in a session on “Global Mission on AI for Energy Scaling through citizen‑centric India Energy Stack” at the AI Impact Summit in the national capital.

“I think in the next two to three years’ time, success in AI and the renewable energy convergence would be where the overall cost of power to the consumers goes down, our industrial competitiveness goes up, and consumer empowerment becomes prosumer empowerment,” he said.

He also mentioned that the challenge lies in the distribution systems and where assets that are being developed across the country need to be maintained.

Hemang Jani, Senior Advisor to the Executive Director for India, Bhutan, Bangladesh and Sri Lanka at the World Bank, said AI should not be seen as just a technology, but as a development infrastructure.

“According to him, AI cannot bring fiscal prudence and governance reforms, but it can enable all of these things.”