Power grid patent applications are on the rise due to focus on AI solutions

The number of new patents for integrating artificial intelligence (AI) into electricity networks has increased sixfold in recent years, with the United States and China leading the way in smart grids, according to a new study by the European Patent Office (EPO) and the International Energy Agency (IEA).

The report, Patents for Enhanced Electricity Grids, shows that the number of patents for technologies in electricity grids has risen sharply over the past two decades. This boost is mainly due to digital integration and the emergence of clean energy sources. Software innovations increased smart functions in physical grids by 50% between 2010 and 2022, with demand and supply forecasting tools and electric vehicle charging technologies being the most significant growth segments.

Innovation in electricity infrastructure is one of the fastest-growing technology fields in the world. The report highlights the period between 2009 and 2013 when innovation in electricity networks grew at 30% per year-seven times faster than the average for other technology fields. The report uses global patent data to chart innovation in physical and smart grid technologies from 2001 to 2022 based on international patent families (IPFs). Although growth is gradually stabilizing, the number of new applications remains high in most regions.

Draghi report

“As highlighted in Mario Draghi's recent report, to maintain its economic competitiveness, Europe must take leadership in new clean technologies and accelerate the energy transition,” said EPA President António Campinos. “Significant progress has already been made, underscoring the importance of investing in smarter and more flexible electricity grids to balance growing energy demand with variable energy sources. This report provides insight into patent trends and serves as a roadmap for our transition to a new energy system.”

“Inadequate power grids are a barrier to economic activity and energy access while also implementing clean energy technologies, which are more costly and complex,” said IEA Director Fatih Birol. “This study shows that innovators are responding to the need for competitive and flexible grid technologies - a problem too often overlooked. The data shows encouraging innovation growth to expand and maintain critical network infrastructure. China is now leading this growth, increasing competitive pressures for other regions. We continue to support governments in driving innovation for safe and sustainable energy transitions.”

Europe and Japan lead, China is rapidly catching up

The EU and Japan lead in grid innovation, each with a 22% share of all electricity grid patents between 2011 and 2022. The U.S. follows with 20%. Within Europe, the leading countries of patent origin are Germany (11%), Switzerland (5%), France (4%), the UK (2%) and Italy (1%). China, meanwhile, has become the fastest-growing region in this field. China's share rose from 7% in 2013 to 25% by 2022, overtaking the EU as the leading region for patent applications in this sector for the first time.

According to the report, universities, research institutes, and smaller companies also play an essential role in the innovation of electricity networks. Most network technology start-ups are based in Europe and the US; 37% have applied for patents, significantly higher than the European average of 6%, indicating a strong potential for attracting venture capital.