The industry-level applications of artificial intelligence (AI) are potentially limitless, and renewable energy is among the areas ripe for a broader embrace of AI.
There are inklings that the intersection of AI and clean energy is increasing and will continue doing so over the long term. Predictably, there are related investment implications, indicating ETFs such as the Invesco ESG Nasdaq 100 ETF (QQMG ) could be worth evaluating.
In fact, a case can be made that when it comes to AI teaming up with renewable energy, QQMG is one of the most relevant ETFs. That’s because, as its name implies, it adheres to ESG principles and its roster is home to an array of leading AI companies.
QQMG: Where AI Opportunity Meets Renewable Energy
The AI/renewable energy opportunity set received indirect attention recently when U.S. climate czar John Podesta led an envoy to Japan. The purpose was to discuss how large, industrialized economies can do more to combat climate change and enhance decarbonization efforts.
“While there was no mention of AI specifically, just ‘technologies’ by the US climate envoy on his trip to Japan, we believe that there’s a huge opportunity for AI to boost the energy transition,” noted deVere Group CEO Nigel Green. “The AI boom is fundamentally reshaping our economies, how we do business, and our lives in real-time.”
Currently, the AI/renewable energy combination is in its infancy. As a result, it’s not getting much attention. But the relationship is not only born out of necessity, it’s practical as well. For example, it’s possible AI technology can address some the dependability issues associated with renewable energy sources while perhaps boosting energy storage capabilities.
“AI-driven algorithms can optimise the performance of energy storage systems by predicting demand fluctuations, managing charging and discharging cycles, and identifying opportunities for revenue generation through ancillary services,” added Green.
Furthering QQMG’s status as a play on the AI/renewable energy relationship is the role AI can play in supporting other disruptive technologies central to broader deployment of clean energy. Those include the internet of things, smart sensors, and green buildings. Those themes are all accessible via QQMG.
“By identifying inefficiencies, achieving optimal equipment performance, and adjusting consumption patterns, AI-driven solutions drive down energy costs and contribute to sustainability goals, creating value for investors and stakeholders alike,” concluded deVere’s Green.
For more news, information, and analysis, visit the ETF Education Channel.
