AI Steps In to Rethink the Cost of Grid Upgrades

Hydro Ottawa tests AI to defer grid upgrades and manage peaks, piloting a scalable digital model for modern utilities

11 Feb 2026

Canada’s power grid is getting a digital brain transplant, and Hydro Ottawa wants artificial intelligence to do the thinking.

With C$6 million in backing from Natural Resources Canada, the utility has launched the Ottawa Distributed Energy Resource Accelerator, or ODERA. The goal is simple but ambitious: use AI to delay expensive grid upgrades without sacrificing reliability.

Electric vehicles, heat pumps, and new housing are pushing electricity demand higher. Traditionally, utilities respond by building more infrastructure. New substations, thicker wires, bigger transformers. It works, but it is costly and slow.

Hydro Ottawa is asking a different question. What if smarter software could buy time?

The pilot, now underway in areas including Kanata North, focuses on forecasting rather than full control. The AI system scans historical usage, weather data, and EV charging patterns to predict when and where demand might spike. Those spikes often last only a few hours, yet they can force utilities to plan major upgrades.

If the system sees a surge coming, it can signal connected devices such as smart thermostats, home batteries, and EV chargers to briefly adjust their consumption. The idea is not to cut power, but to smooth out peaks before they strain equipment.

The savings could be substantial. Delaying even one substation expansion could avoid tens of millions of dollars in spending. For customers, participation may come with incentives and better insight into their own energy habits.

The effort reflects a broader shift across North America. As electrification accelerates, utilities are under pressure to modernize without sending capital costs soaring. Coordinated by AI, clusters of homes and businesses could function like small, local power plants, balancing supply and demand in real time.

There are hurdles. Forecasts must be accurate. Cybersecurity has to be tight. Regulators need to treat digital platforms with the same seriousness as physical infrastructure. And customers must be willing to participate.

Still, the direction is clear. As renewable energy grows and EV adoption climbs, real time grid management is moving from experiment to necessity.

If Hydro Ottawa’s pilot proves it can scale, the future grid may rely less on concrete and steel and more on code.