Roberto Bocca on AI’s Dual Role in Energy and India’s Renewable Energy Challenges at Davos 2025

At the World Economic Forum Annual Meeting 2025 in Davos, Roberto Bocca, Head of the World Economic Forum's Centre for Energy, spoke exclusively with CNBC TV18 on the shifting dynamics of global energy. He stressed AI's dual function in energy supply and demand. According to Bocca, artificial intelligence's impact on energy systems has the potential to accelerate the global transition to more sustainable energy sources.

AI's Dual Role

One of the key discussions at Davos 2025 is the role of AI in shaping energy consumption. Roberto Bocca elaborated on AI’s potential to affect both energy supply and demand. As AI usage increases, particularly in data centers, energy demand is expected to rise. However, AI can also optimize energy systems, enhancing efficiency and reducing overall consumption. This dual impact could potentially balance energy supply and demand in the medium term.

The World Economic Forum Annual Meeting 2025: Collaboration for the Intelligent Age

Short Term Energy Demand Spikes, Long Term Efficiency Gains

In the short term, Bocca noted that specific sectors, especially those relying heavily on data processing and AI technologies, will experience significant energy demand spikes. However, in the long term, AI’s integration into energy systems could help reduce these demands, offering long-term efficiency gains. This will be crucial for addressing the growing global energy challenges.

Nuclear Energy's Role

Bocca also touched on the role of nuclear energy in meeting global energy demands. AI's role in the energy sector has been significant. However, nuclear energy is also being explored as a vital solution for decarbonization. Countries and companies across the globe are reconsidering to have nuclear energy as part of their strategies to transition to cleaner energy.

India and Renewables

When it comes to renewable energy, India has made significant progress. But, Roberto Bocca highlighted that maintaining this momentum is crucial for the country's long-term energy goals. While India’s renewable energy projects are commendable, the rapidly rising energy demand presents a considerable challenge to these achievements.

Bocca pointed out that while global advancements were made in the energy transition during 2024, these efforts did not fully meet the expectations required to address the urgent energy needs.