How RAG is supporting a more efficient energy sector
How RAG can streamline operations of energy companies
![A person holding out their hand with a digital AI symbol.](https://cdn.mos.cms.futurecdn.net/3Ek42Bm7W4No2qAL4PKvCU-320-80.jpg)
Back in November 2022, the UK joined the Net Zero Government Initiative as a partner and signatory, pledging to achieve net zero emissions by 2050.
Since then, the Climate Change Committee (CCC) has expressed concerns about the UK’s ability to fulfil its promise, while the current Labour government scaled back its £28 billion green investment plan earlier this year while still in opposition. As a result, it’s been rightly called into question whether achieving the net zero objective is a genuine possibility within the designated timeframe.
In order to ensure that net zero emissions remains a viable goal instead of becoming another pipe dream, energy companies should explore how they can leverage emerging technologies to maximise efficiency. One such example is retrieval augmented generation, known as RAG.
CTO at STX Next.
What is RAG?
In essence, RAG is a tool that combines the retrieval of relevant information with the generation of useful responses. Picture a super-smart assistant that can comb through vast quantities of data, pick out the relevant points, and then provide recommendations or create reports based on that data. That's exactly what RAG does, serving as a behind-the-scenes AI hero.
Implementing RAG in the energy sector
There are countless barriers to widespread deployment in the energy industry, due to uncertainty and unpredictability in the sector. However, RAG allows energy companies to better utilize the data at their disposal, painting a clearer picture of probable outcomes and allowing them to shift from a reactive to a proactive approach.
Here are some examples of areas where RAG can be deployed to improve performance.
Predictive maintenance
Typically, the energy sector is capital-intensive: managing resources effectively can be the difference between success and failure. It can be a struggle to predict when machinery or equipment might fail, but RAG can analyze historical data and suggest maintenance before costly breakdowns occur. This leads to fewer disruptions and more trust in the stability of the energy supply.
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Better wind farm efficiency
Wind farm operations can be optimized through the deployment of RAG. The AI that drives this technology is able to analyze satellite images, weather patterns, and historical turbine performance data to suggest the best wind turbine placements and maintenance schedules. This can lead to significant improvements in total output, as well as efficiency increases and reductions in unscheduled maintenance costs.
Automated compliance
The energy sector is heavily regulated, with policies that change frequently. RAG can navigate the latest regulations, compliance laws and guidelines, ensuring that companies avoid fines and penalties while maintaining safe and lawful operations.
Predicting solar power generation
RAG can generate custom energy-saving strategies by examining vast amounts of consumption data, which helps companies reduce waste, save on costs and move towards a more sustainable operation. Similar technology can be applied to predict solar power generation capability and match it with historical customer demand data, integrating weather forecasts and real-time solar irradiance data.
RAG leads the charge
Innovations such as RAG have reached a level of maturity where they’re ready to be rolled out on a wide scale. RAG can sift through endless reports, historical market data and forecast models to help companies understand the future of energy prices. This information can then be used to make smarter buying and selling decisions, potentially saving millions in the marketplace.
Energy companies that adopt this technology, having recognized its ability to yield instant returns, will hopefully then further expand their horizons, seeking out other innovations that can make their operations more intelligent and intuitive. This could see AI algorithms playing a central role across the operations of energy companies, taking full advantage of the technology’s ability to make predictions, create forecasts and suggest actionable insights.
RAG in large language models
RAG may also play a vital role in integrating large language models (LLMs) into various business areas for operators in the energy sector. We’ve all seen the hype surrounding LLMs like ChatGPT from OpenAI which, in general, work well. But every business has its own characteristics and environment, with its own documents, procedures, and specifications.
Therefore, it’s extremely hard to apply LLMs in businesses effectively, but RAG can help in this respect. It provides this missing layer of business-specific context to LLMs, which in turn means delivering relevant business value that energy companies can take advantage of. Essentially, you can try to dig a hole with a spoon, but a shovel will do it better, meaning RAG can be a transformational tool in LMM implementation.
Achieving net zero with the support of technology
Net zero ambitions are contingent on a wide range of factors – there is no single element that will be the basis for success. However, the way energy companies approach new technology and the willingness they show to experiment with the latest innovations will certainly be a contributing factor to building a cleaner world. RAG promises to play a significant part in this transition.
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Łukasz Koczwara is CTO at STX Next, a global leader in IT consulting.