(Editor’s note: The following transcript has been edited for clarity.)
From the heart of India, resilience has shaped who I am. Today, I am sharing insights from leaders and innovators who are driven by the same strength. Welcome to Resilience, where we explore how resilience is driving transformation in the energy sector.
I am your host, Shellka Arora-Cox, a partner at Pillsbury Winthrop Shaw Pitman. Joining me today is Sandhya Ganapathy, the CEO of EDP Renewables, North America. Sandhya and I will be exploring the fascinating intersection of energy transition and artificial intelligence (AI). Sandhya, welcome.
Sandhya Ganapathy: Thank you so much, and I’m absolutely looking forward to the conversation.
Arora-Cox: Before we dive into the details of energy transition and AI, could you talk a little about how you found yourself at the helm of EDP Renewables?
Ganapathy: Sure. My journey with renewables started about 13 years ago when I joined EDP. Before that, I was an investment banker. I loved banking, but I was at a point in my career where I wanted to move to the client side and do something more purpose-driven. At that time, my family and I moved to Houston, and renewables was still a young industry. I felt it was a space where I could have an impact, not only because of my background but also because it aligned with my belief that businesses and communities can coexist.
I started by leading M&A for North America and then for the group as a whole. Over the last three years, I’ve been running North America, and looking back, I wouldn’t have had it any other way.
Arora-Cox: That’s a great journey. Could you give our listeners an overview of the scope and scale of EDP Renewables’ projects and your day-to-day work?
Ganapathy: Certainly. EDP Renewables is an integrated independent power producer (IPP) based in Portugal. We’re present in 30 countries, and the U.S. is our largest market, where we have nearly 20 gigawatts of installed capacity across various forms of energy. Our company is significantly leaning towards renewables, aiming to be coal-free by 2025, fully green by 2030, and net-zero by 2040. We employ about 13,000 people globally. In North America, where we’ve been operating for 17 years, we focus on onshore and offshore wind, solar, batteries, and hydrogen. We have over 10 gigawatts of operating assets and a team of 1,100 people on the ground.
Arora-Cox: You touched on decarbonization goals. Do you see AI as the key to delivering the energy we need, or is it just another tool in our toolkit?
Ganapathy: I wouldn’t categorize AI as just another tool. In my view, AI and energy are what I’d call a power couple. The real challenge is ensuring this partnership works effectively.
Traditionally, energy was more straightforward: you had generation, and it was distributed to consumers. But today, the energy landscape is far more complex. We have producers who are also consumers, and the grid needs to operate seamlessly within this multidimensional environment. AI is crucial to managing this complexity.
On the demand side, we’re seeing significant increases in energy consumption, driven by factors such as electrification, manufacturing, and the data needs of AI itself. While energy efficiency has traditionally helped offset this growth, we are now in a phase where consumption is rising more rapidly. This is where AI becomes essential—not only in managing demand but in ensuring that this increased consumption aligns with decarbonization goals.
AI is also invaluable for renewable energy companies like EDP. It enables us to operate more efficiently by improving areas such as predictive maintenance and diagnostics for our wind farms. AI allows us to optimize performance by forecasting weather patterns more accurately, which is critical given the increasing unpredictability due to climate change. Additionally, AI helps balance the grid, especially when integrating renewable sources like solar, wind, and battery storage, ensuring fluctuations are managed more smoothly.
In short, AI is far more than just a tool; it plays a pivotal role in both managing the complexity of energy systems and driving the transition to cleaner, more resilient energy infrastructure.
Arora-Cox: You mentioned AI’s potential to help meet demand. How much of that demand do you see being met by renewables? What role do you think AI will play in decarbonization?
Ganapathy: AI will play a central role in decarbonization, but it’s not the only factor. I view AI as a key enabler in helping us meet our decarbonization goals, but the success of these efforts will depend on how effectively we integrate AI with other strategies and technologies.
For example, on the demand side, we are seeing a surge in energy consumption, driven in large part by digital technologies like AI itself, data mining, and even activities like Bitcoin mining. Traditionally, improvements in energy efficiency have helped offset rising demand, but we are now entering an era where consumption is increasing faster, especially as industries move toward electrification. This increased demand, if left unchecked, could lead to higher emissions—unless we deploy renewable energy at a scale that keeps pace with this consumption.
This is where AI plays a pivotal role. AI allows us to optimize how we generate, distribute, and store energy, particularly from renewable sources. For example, AI can help us manage intermittent renewable resources, like wind and solar, by improving weather forecasting and optimizing energy storage. This makes the grid more resilient and ensures that clean energy is available when and where it’s needed.
Additionally, AI helps companies like EDP operate more efficiently. Through predictive maintenance, diagnostics, and real-time monitoring, AI can ensure that renewable assets like wind farms and solar installations are operating at peak performance. This not only helps reduce downtime but also extends the lifespan of these assets, contributing to more sustainable energy production.
However, AI alone cannot solve all the challenges of decarbonization. The pace at which we can deploy renewable energy projects is critical. There’s a significant gap between the growing demand for electricity, driven in part by AI, and the deployment of renewables. Closing this gap will require strong public-private partnerships, streamlined permitting processes, and coordinated efforts across federal agencies, utilities, and developers.
So, while AI is a powerful tool in our decarbonization toolkit, its success will depend on broader structural changes in how we plan, deploy, and manage energy infrastructure. The real challenge is ensuring that the pace of renewable energy deployment matches the increasing demand, and AI will be instrumental in making that happen.
Arora-Cox: You touched on many stakeholders in the sector, and it’s clear that it’s not just about EDP or any single developer. The U.S. electricity grid is one of the most complex machines on the planet, with thousands of generators connected across 600,000 miles of transmission lines—double the distance to the moon. How do you see AI and your partners in the sector playing a role in enhancing grid resilience?
Ganapathy: That’s a great question, Shellka, and it truly emphasizes the complexity of the grid we’re dealing with. The U.S. grid is a vast, intricate machine, and it wasn’t designed for the energy landscape we are in today. The upgrades we’ve made over the years are minimal, especially compared to the rapid shifts we’re now seeing in how we generate and consume energy.
I always think of an example: someone showed me a map of Australia’s electricity grid, and because of its geography, the grid essentially runs in a straight line. In contrast, the U.S. grid is far more complicated, with thousands of interconnections and different types of energy sources feeding into it. AI is absolutely essential in managing this complexity.
Today, we have about 1.2 million gigawatts in the system across all forms of energy, including renewables. And what is in the queue for study and potential deployment is even more—more than 1.2 million gigawatts. So, over the years, we’ve installed an incredible amount of capacity, but there’s still so much more in the pipeline.
AI helps us enhance grid reliability by improving weather forecasting, allowing us to predict conditions more accurately, down to the minute. This is especially important with the growing unpredictability of weather patterns due to climate change. AI also helps us integrate distributed energy resources like microgrids and optimize how we distribute power across the grid. However, technology alone won’t solve everything. We need structural reforms, especially around long-term transmission planning. FERC’s discussions on long-term planning are encouraging, as they require ISOs and RTOs to think about the next 10, 15 years, which is crucial for the future of energy resilience.
This isn’t about politics or ideology. It’s about what’s necessary for the country to be energy-resilient, secure, and for the economy to thrive. AI will be a critical tool in making sure our grid can meet the demands of tomorrow while supporting our decarbonization goals.
Arora-Cox: As a leader in this space, how are you preparing your teams for this ever-evolving energy landscape?
Ganapathy: One of my core leadership principles is always being prepared for the unexpected. A great example I often refer to is Michael Phelps during the 2008 Beijing Olympics, when his goggles slipped during one of his races. Despite the unexpected challenge, he still went on to win the gold medal. This example speaks to the importance of planning for every possible scenario, even those you wouldn’t anticipate.
In our industry, we have to plan for the unexpected. I often tell my team that it’s not enough to just have a Plan A—we need Plans B, C, and even D in place. It’s about being prepared for every scenario to ensure project certainty and success.
But beyond planning, the most important investment we can make is in our people. We need to continuously train and upskill our workforce so they can handle the evolving demands of the energy sector. At some point, each of us will pass the baton to the next generation, and it’s critical that they’re ready to take the industry even further.
AI is a key part of this transformation, and we’re already leveraging it across our operations. Whether it’s optimizing our assets or improving project management, we’re constantly looking for ways to improve efficiency and innovate. That culture of innovation is essential to our long-term success, and we need to foster it at every level of the organization.
Arora-Cox: Looking into your crystal ball, what trends do you see shaping the energy sector over the next two to three years?
Ganapathy: The most significant trend I foresee is the continued rise in energy demand. For this growth to be sustainable, we must ensure that the areas driving demand also see corresponding renewable energy deployment. Timely project delivery will be crucial, as industries and consumers alike are betting on renewables to meet their needs.
Energy storage is another key area of focus. While storage is already playing a large role today, I anticipate substantial growth. By the end of this year, we expect to see close to 40 gigawatts of solar capacity and more than 10 gigawatts of storage deployed in the U.S. alone. The future of storage will involve optimization, particularly in moving beyond the current standard of four-hour storage to longer-duration solutions. This evolution will enhance grid resilience and reliability.
Additionally, hydrogen is an emerging trend that holds long-term potential. Though the hydrogen sector still has a way to go, it’s reminiscent of where battery technology was 10 or 15 years ago. I am optimistic that we will see significant advancements, though it will take time before hydrogen becomes commercially viable at scale.
Ultimately, I am encouraged by the genuine belief across the sector that renewable energy will continue to take center stage. We’re no longer at the margins of the energy mix—renewables now represent around 20%, and we must maintain this momentum to achieve even greater penetration in the years ahead. The energy sector is poised for continued growth, and I am confident that we have the tools and innovation necessary to meet the increasing demands of the future.
Arora-Cox: Before we close, what keeps you resilient? What makes your work both impactful and enjoyable?
Ganapathy: I genuinely love my job, my company, and the people I work with. There’s a deep sense of purpose that comes with working in the renewable energy sector. We’re not just delivering green electrons to the grid; we’re making a lasting impact on communities. I remember a farmer in Indiana telling me how leasing his land for one of our projects helped him send his children to college. That’s incredibly powerful and serves as a reminder of the broader societal impact we’re having.
For me, resilience comes from knowing that what we’re doing is meaningful and that it will have a lasting positive impact on future generations. The work we do today will set the foundation for a more sustainable and equitable world, and that’s what keeps me going.
Arora-Cox: As we wrap up, let’s end on a lighter note. Any words of wisdom or perhaps a quote from Ruskin Bond for our listeners?
Ganapathy: I grew up in India, and like many, I was deeply influenced by British authors who lived there, including Ruskin Bond. One of his quotes that has always resonated with me is: “I dream of a garden, a garden that is spacious, flourishing, and fragrant. If I don’t succeed, never mind, I still have my dream.” I find that quote particularly meaningful because it speaks to the resilience required in our sector. Even when things don’t go our way, it’s important to hold onto that dream and purpose. For anyone entering the sector or even considering it, my advice would be to stay focused on the larger purpose. The journey may not always be smooth, but the dream of building a better, more sustainable future will take you far.
Arora-Cox: Sandhya, thank you so much. May the garden grow greener and greener. That’s it for today. Tune in next time for more Resilience.