Digitalisation: an enabler for the clean energy transition

Abstract

Russia’s war on Ukraine and the resulting energy crisis have painfully reminded Europe that it must urgently reduce its dependence on fossil fuels. For a sustainable, secure and affordable energy future, the coming years will require a massive scale-up of renewable energy across the EU and a tremendous effort by European businesses and households to cut their energy consumption. The use of data and digital solutions can play a pivotal role in bolstering these efforts. This has been recognised in the European Commission’s EU Action Plan on digitalising the energy system of October 2022, the first comprehensive plan for a twin green and digital transition in the European energy sector. While this plan is undeniably commendable, it is just a start. To fully unlock the potential of digitalisation in the transition towards sustainable energy systems, built around the active participation of consumers, significant shares of renewables, energy savings, and efficient energy use, the EU and its member states need to: Accelerate work on a common European energy data space, characterised by interoperable data standards, effective incentives for data sharing and adequate data protection and privacy safeguards for consumers. Ensure that citizens possess the necessary digital skills and information to reap the full benefits of the twin transition in terms of consumer empowerment and access to affordable and clean energy. Put in place the necessary safeguards regarding cybersecurity of energy networks to ensure that digital transformation does not jeopardise the resilience of EU energy systems. Use financial tools to accelerate the deployment of digital solutions in the energy sector and equip existing networks with the necessary digital infrastructure.