Quantum for Energy and Utilities 2026

3.2 Distribution Distribution system operators (DSOs) face the “last mile” complexity of bidirectional power flows from prosumers, EVs and residential solar. Distributed energy resources (DERs) optimization and EV charging Coordinating the charging of thousands of EVs to avoid transformer overloads while accommodating user preferences is a massive scheduling problem. Neutral-atom quantum processors have been tested for EV smart-charging: forecast demand and renewable output, then schedule charging to use cleaner power while avoiding local bottlenecks and transformer overloads. The approach fits distribution grids because the hardware can represent network constraints efficiently. Local energy markets and peer-to-peer trading As prosumers and behind-the-meter storage grow, distribution networks are moving towards local energy markets that balance supply and demand within a constrained feeder or microgrid. These markets require fast clearing and constraint-aware matching between buyers and sellers. Quantum optimization methods are being investigated to accelerate market clearing and matching under network constraints, enabling near-real-time peer-to-peer trading while maintaining voltage and thermal limits. In principle, better clearing can increase the economic viability of DERs and provide more transparent price signals to consumers. Fault detection and network reconfiguration Fault isolation in distribution is a last-mile problem: there are many switching options, limited observability and strong pressure to restore service quickly. Improvements in measurement fidelity and automated reconfiguration can reduce outage duration and limit equipment damage. Quantum sensors could provide more precise current and voltage measurements, improving the detection of subtle anomalies. In parallel, quantum-inspired and quantum optimization routines can be applied to feeder reconfiguration (switching) to isolate faults and restore power to the maximum number of customers within operational constraints. 3.3 Storage Energy storage is the critical buffer required to smooth out renewable intermittency. Quantum technologies are being applied to both the design of better batteries and the optimal deployment of storage assets. Battery materials discovery Improving the energy density, safety and charging speed of batteries depends on discovering new electrolyte and electrode materials. Quantum simulation is being pursued for battery chemistry, including lithium-air and solid-state systems, aiming to narrow the search space for higher-capacity, safer and faster-charging materials. Hydrogen storage catalysts Long-duration storage options extend beyond batteries; hydrogen is a leading candidate where energy must be stored for long periods or transported. Improving electrolysers and storage media depends heavily on catalyst and materials performance. Quantum computing is being explored to model hydrogen interactions with different durable and sustainable catalysts and storage materials (including porous frameworks), with the goal of identifying combinations that reduce energy losses and improve safety. Community insights for quantum solutions in power and grid infrastructure In the near-term, quantum application concentrates on strengthening grid reliability and optimizing system performance. In transmission, large-scale grid- flow optimization and ultra-secure communication lead, underscoring resilience and complexity management. In distribution, focus shifts to local DERs optimization and EV charging orchestration, indicating decentralized grid control requirements. In storage, emphasis centres on next- generation battery chemistries and hydrogen catalysts, alongside asset degradation monitoring, signalling expectations that quantum computing will accelerate materials innovation while enhancing lifecycle management of energy assets. Distribution networks are moving towards local energy markets that balance supply and demand within a constrained feeder or microgrid. Quantum for Energy and Utilities: Key Opportunities for Energy Transition 23