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Foundation models are transforming artificial intelligence by enabling pre-training, adaptation, and reuse across heterogeneous tasks. Their application in energy systems is emerging rapidly, creating a need for systematic synthesis across forecasting, control, and decision-support settings. This systematic review identifies, categorizes, and evaluates the use of foundation models in energy-system forecasting, grid-edge control, and smart-grid decision support. It focuses on how large language models, pre-trained transformers, multi-modal models, and emerging time-series foundation models are adapted for energy tasks. A PRISMA-guided search of peer-reviewed literature from 2017 to 2025 resulted in 30 included studies. Models were classified by architecture, fine-tuning method, data modality, and application domain. The review finds that large language models dominate decision-support applications, while pre-trained transformers and time-series foundation models are most developed in forecasting. Grid-edge control applications remain nascent, with most studies addressing planning, diagnostics, or dispatch rather than closed-loop physical deployment. Foundation models hold significant promise for smart grids, but critical gaps remain in real-time control, safety assurance, privacy, and evaluation. A research agenda is proposed to guide rigorous, trustworthy, and operationally relevant deployment.

Smart-grid forecasting requires models that can reason across heterogeneous temporal, environmental, and structural information. Existing forecasting architectures often treat load sequences, weather context, and grid topology as separate modeling inputs rather than as jointly learnable forecasting evidence. This article proposes a foundation-model architecture for multi-horizon smart-grid forecasting. The architecture is designed to integrate smart-meter sequences, weather context, and grid-topology tokens within a unified transformer framework. The proposed architecture could encode smart-meter data through patch-based or convolutional sequence tokenization. Weather information would be represented through learned meteorological embeddings, while feeder topology could be incorporated through graph-derived or learnable topology tokens. The design specifies how heterogeneous tokens may be fused through cross-modal attention and routed toward horizon-specific forecasting heads. It also outlines an evaluation strategy based on pre-training across diverse feeders and fine-tuning on held-out forecasting tasks. The architecture offers a conceptual blueprint for generalizable smart-grid forecasting systems. Further validation would be required to determine whether unified tokenization improves transferability across feeders, substations, and regional grid configurations.

Grid intelligence increasingly depends on artificial intelligence, yet operational data remains distributed across utilities, microgrids, and electric vehicle aggregators. Federated foundation models offer a pathway for shared learning while preserving privacy, operational autonomy, and data sovereignty. Existing grid AI architectures are not designed to federate foundation models across multiple stakeholder classes with different data assets, control objectives, and regulatory obligations. The resulting fragmentation limits the ability of the power sector to build reusable intelligence across distribution, local energy systems, and mobile flexibility resources. This article proposes a scalable grid-intelligence architecture that federates a foundation model across distribution utilities, microgrid operators, and EV aggregators. The architecture integrates actor-specific layers with a shared federated foundation model layer and a governance/security layer. The article develops a conceptual architecture using layered functions, interface descriptions, model-update flows, and governance responsibilities. Validation pathways are outlined as design checks, staged pilots, and operational readiness assessments without presenting empirical results. The architecture defines how each actor contributes local knowledge, receives model improvements, and preserves control over proprietary data. The tables summarize utility, microgrid, and governance functions that support scalable, privacy-respecting federation. The proposed architecture offers a blueprint for collaborative AI in the power grid. It enables shared intelligence across diverse grid stakeholders while keeping raw data local and governance responsibilities explicit.