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Energy Optimisation with AI in Process Industries

Amey Kadle
9 February 2026
7 min read

For a steel, refractory or paint plant, energy is the second-largest operating cost after labour. A 6% reduction on a ₹40 crore annual energy bill is ₹2.4 crore straight to the bottom line. AI-driven energy optimisation is one of the few places where the maths is genuinely compelling.

The Approach Stack

  • Model-Predictive Control (MPC): classic control engineering enhanced with learned process models.
  • Reinforcement Learning (RL): agents that learn optimal setpoints from simulated and real-world experience.
  • Hybrid digital twins: simulator-trained agents validated on real data before deployment.

Where AI Wins

  • Combustion control on furnaces and boilers — air-to-fuel ratio optimisation in real time.
  • HVAC and compressed-air optimisation — demand-driven setpoints.
  • Crystallisation, drying and grinding control — minimising overprocessing energy.
  • Power factor and load-balancing across captive power.

Risk Management

Energy optimisation models touch live setpoints. Risk management is not optional:

  1. All AI setpoint suggestions go through a deterministic safety envelope.
  2. Operator can override at any moment.
  3. Continuous evaluation against a "shadow controller" that documents counterfactual energy use.
  4. Shut-down path is single-button, well-rehearsed.

Practitioner note

Energy AI is one of the highest-leverage AI use-cases in Indian process industries. It is also one of the easiest to do badly. Deploy with a partner who understands both the chemistry and the maths.

Frequently asked

Is this just better SCADA?

No — SCADA shows you the energy. AI-driven optimisation changes the setpoints that consume the energy, within safety constraints.

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Amey Kadle

Founder & CEO, Ajinkya Technologies. 20+ years of building MES, ERP and AI systems for India’s most demanding manufacturing plants.

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