Recent years have seen a sixfold increase in new patents incorporating artificial intelligence into power grids, with the United States and China spearheading developments in smart grid technology. This trend is highlighted in a recent study by the European Patent Office (EPO) and the International Energy Agency (IEA).
The report, titled Patents for Enhanced Electricity Grids, reveals a significant surge in electricity grid technology patents over the past two decades. This growth is driven by breakthroughs in digital integration and the expansion of clean energy sources, which are transforming the energy sector.
Innovation in Electricity Grids
Between 2010 and 2022, innovations in software significantly enhanced smart features within physical grid patents by 50%. Supply-demand forecasting tools and electric vehicle charging were the fastest-growing areas of innovation. Highlighting the rapid evolution of the sector, the report notes that innovation in electricity grids grew by 30% annually between 2009 and 2013, which is seven times faster than the average for other technology fields.
Physical and Smart Grid Technologies
The report analyzes global patent data, tracking innovation in both physical and smart grid technologies from 2001 to 2022 using international patent families (IPFs). While the growth momentum has begun to stabilize, new patent applications remain consistently high across major regions.
IEA Executive Director Fatih Birol commented on the challenges posed by inadequate electricity grids, saying, “Inadequate electricity grids are a barrier to economic activity and energy access while also making deployment of clean energy technologies more costly and complex.”
Innovations to Expand Network Infrastructure
Birol emphasized the importance of innovation for more competitive and flexible grid technologies, often an underappreciated issue. "The data show encouraging growth in innovations to expand and maintain critical network infrastructure," he noted.
Birol also pointed out that China leads the growth in this sector, which raises competitive stakes for other regions. His remarks underline the importance of supporting innovators to promote secure and sustainable energy transitions.
Mario Draghi’s Recent Report
EPO President António Campinos noted, “As emphasised in Mario Draghi’s recent report, to secure its economic competitiveness, Europe must take the lead in new clean technologies and accelerate the energy transition away from fossil fuels.” The study underscores the need for smarter, more adaptive electricity networks to meet rising power demands from variable energy sources.
Europe and Japan at the Forefront, China Surges Ahead
While Europe and Japan each hold a 22% share of all grid-related patents from 2011 to 2022, with the United States close behind at 20%, China has rapidly emerged as a key player. Its share of grid-related patents jumped from 7% in 2013 to 25% in 2022, surpassing the EU to become the leading patenting region in this arena.
Role of Grid-Tech Startups
The study also highlights the significant contributions of universities, research institutes, and smaller companies to electricity grid innovation. Notably, 37% of grid-technology startups, primarily based in Europe and the United States, have applied for patents, showcasing their strong potential to attract venture capital. This is notably higher than the 6% average for European startups.
New patents to integrate artificial intelligence into power grids have grown sixfold in recent years, with the United States and China leading the way in AI for smart grid development, 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 how patents for electricity grid technologies have surged over the past two decades as advances in digital integration and the rollout of clean energy sources are driving innovation across the energy sector.
Innovation in electricity grids
Software innovations boosted smart features in physical grid patents by 50% between 2010 and 2022
Software innovations boosted smart features in physical grid patents by 50% between 2010 and 2022, with supply-demand forecasting tools and electric vehicle charging representing the two largest areas of growth in this category.
Innovation in electricity infrastructure is one of the fastest-growing technology fields in the world now. To illustrate the scale of growth, the report pinpoints the period between 2009 and 2013 when innovation in electricity grids grew by 30% a year, seven times faster than the average for all other technology fields.
Physical and smart grid technologies
The report uses global patent data to map innovation in both physical and smart grid technologies from 2001 to 2022, based on international patent families (IPFs). It shows momentum gradually stabilizing, but new applications remain at a consistently high level in most major regions.
"Inadequate electricity grids are a barrier to economic activity and energy access, while also making deployment of clean energy technologies more costly and complex," said IEA Executive Director, Fatih Birol.
Innovations to expand network infrastructure
Fatih Birol added: "This study shows that innovators are responding to the need for more competitive and flexible grid technologies, an issue that is too often overlooked. The data show encouraging growth in innovations to expand and maintain critical network infrastructure."
"This growth is now led by China, raising the competitive stakes for other regions. We will continue to help governments spur innovation for secure and sustainable energy transitions."
Mario Draghi’s recent report
"As emphasized in Mario Draghi’s recent report, to secure its economic competitiveness, Europe must take the lead in new clean technologies and accelerate the energy transition away from fossil fuels," said EPO President, António Campinos.
He adds, "Significant progress has already been made, highlighting the urgency of investing in smarter, more flexible electricity networks to balance growing power demand with variable energy sources. This study offers a unique view of patenting trends, serving as a map for our transition to a new energy system."
Europe and Japan at the forefront, China races ahead
Meanwhile, China has emerged as the fastest-growing region for grid-related patents
The European Union and Japan lead in grid innovation, each region accounting for 22% of all grid-related patents from 2011 to 2022, with the US at 20%. Within Europe, Germany (11%), Switzerland (5%), France (4%), the UK (2%), and Italy (1%) are the top countries of origin of grid patents.
Meanwhile, China has emerged as the fastest-growing region for grid-related patents. Its share rose from 7% in 2013 to 25% in 2022, overtaking the EU in 2022 to become the top patenting region in this field for the first time.
Role of grid-tech startups
The study finds that universities, research institutes, and smaller companies also play a significant role in electricity grid innovation.
Most grid-technology startups are based in Europe and the United States; 37% of them have applied for a patent, which is significantly higher than the 6% average for European startups and suggests strong potential for attracting venture capital.
