Quantum for Energy and Utilities 2026
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Utilities (public services
and critical infrastructure)4
Quantum tools could make utilities safer, smarter
and more efficient, from grid security and pricing
to leak detection and heat-network design.
4.1 Electricity and gas
4.2 Water and wastewaterAs smart grids become more digital and
interconnected, they become vulnerable
to cyberattacks. The advent of large-scale
quantum computers poses a specific threat
to standard RSA encryption used in SCADA
systems and smart meters (“harvest now,
decrypt later”). Multiple entities are piloting QKD
over existing fibre optic lines to secure critical
data transmission between substations.
Smart meter security
QKD is also being explored to secure the
communication between smart meters and the
utility, ensuring customer privacy and preventing
data manipulation.Customer churn and dynamic pricing
Retail energy providers operate in increasingly
competitive markets. Pricing and retention
decisions depend on granular consumption
data, customer segmentation and fast-changing
wholesale conditions. Quantum machine learning
is being applied to customer data to predict churn
with higher accuracy.
Dynamic pricing
Quantum algorithms can optimize dynamic pricing
models in real-time. By analysing market conditions,
grid load and customer elasticity simultaneously,
utilities can set prices that incentivize load shifting
(demand response) while maximizing revenue.
The water sector is increasingly adopting quantum
technologies for network management, leak
detection and treatment efficiency.
Water distribution network (WDN) optimization
WDNs are complex graphs where operators must
optimize pressure and flow to minimize leakage and
energy use (pumping costs). A hybrid quantum-
classical approach was tested for water-network
optimization: classical simulation estimated
network states, while quantum solvers searched
valve settings that improved performance under
constraints. Although still proof-of-concept, it
suggests these hybrid workflows could better tackle
the non-linear hydraulic maths that makes large
networks hard to optimize.Leak detection via quantum sensing
Leaks in underground pipes are a major source
of water loss and are notoriously hard to locate.
Quantum gravimeters and sensors can detect the
micro-changes in density caused by water voids
or saturated soil around a leak. This non-invasive
technique allows for precise localization of leaks
without excavation.
Wastewater treatment optimization
Aeration is the most energy-intensive part of
wastewater treatment, accounting for a significant
portion of a plant’s energy bill. Optimizing the
airflow to biological reactors is a complex control
problem involving biological dynamics and variable
influent rates. Startups like Quantum Mads are Utilities are the interface between the energy system and the end consumer. Their focus
is on service reliability, efficiency, customer engagement and the management of water
and thermal networks.
Quantum for Energy and Utilities: Key Opportunities for Energy Transition
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