Digitalisation of the energy system

Digitalisation has an impact right across the energy value chain, from generation to transport, distribution, supply and consumption. A system-wide approach and EU countries' support to promote cooperation between digital and energy stakeholders are needed for digitalisation of energy to better contribute to the EU’s political priorities, including the European Green Deal and making the EU fit for the digital age.

As the transformation from analog to digital continues, digital technologies will make energy systems more connected, intelligent, efficient, reliable and sustainable in the coming decades.  

Technologies that can improve the way we use energy and help find solutions to decarbonising our energy systems include information and communication technologies (ICT), modern sensors, big data and artificial intelligence, and the internet of things. 

Digitalisation and the extensive use of data comes with a set of challenges and requires preserving high privacy, security, safety and ethical standards, particularly for cyber security matters. Ensuring that the ICT sector is efficient and environmentally friendly in its operation and energy consumption is also important.  

In addition, the development of digital solutions needs an infrastructure fit for the future, with common standards, gigabit networks and secure clouds of both current and next generations. Such infrastructure will allow consumers to engage in the energy transition in a new way, benefitting from better services based on digital innovations, more efficient energy use and energy savings. 

In October 2022, in addition to the emergency interventions to tackle high energy prices, the Commission adopted the Digitalising the energy system - EU action plan (COM/2022/552).

The system-wide digitalisation energy action plan aims to contribute to the EU energy policy objectives by supporting the development of a sustainable, (cyber)secure, transparent and competitive market for digital energy services, ensuring data privacy and sovereignty, and supporting investment in digital energy infrastructure.

Its key actions include

• helping consumers increase control over their energy use and bills by using new digital tools and services
• controlling the energy consumption of the ICT sector, including through an environmental labelling scheme for data centres, an energy label for computers and measures to increase transparency on the energy consumption of telecommunication services
• strengthening the cybersecurity of energy networks with new legislation, including a network code for cybersecurity aspects of cross-border electricity flows

The plan is accompanied by a Staff Working Document (SWD/2022/341), explaining the different actions and the lessons that can be learnt from best practices, national initiatives and successful projects. 

The key actions of the EU digitalising the energy system action plan are presented together with the indicative timeline. When implemented, a short description and the relevant links are added.

The creation of the Smart Energy Expert Group (SEEG) was outlined in the Digitalisation action plan and it was formally established by Decision C/2023/6121, adopted on 18 September 2023.

It aims to assist the Commission on issues regarding the sustainable digital transformation of the energy system and in the development and deployment of smart energy solutions that support - and are strategically aligned with - the goals of the twin green and digital transition.

The expert group will consist of up to 80 members. A call for applications to select the members was launched on 6 October 2023. The Commission will also establish 3 subgroups under the SEEG to cover

• Data for Energy

• Consumer Empowerment and Protection

• Cybersescurity

The Commission promotes the digitalisation of the energy system through research and innovation projects under Horizon Europe and in synergy with other programmes, such as the Digital Europe Programme, the LIFE Clean Energy Transition sub-programme, Connecting Europe Facility and Cohesion Funds.

A thematic collection of innovative EU-funded research results can be found in the CORDIS Results Pack on the digitalisation of the energy system. The key areas covered include the development of a Europe-wide data sharing infrastructure for new energy services, empowering consumers by increasing control over their energy use and bills through new digital tools. The research projects also address the uptake of new digital technologies for the energy system and strengthening of cyber security and resilience throughout the energy system to meet real-time requirements.

• 06/06/2023: Implementing Regulation for access to metering and consumption data C(2023)3477 
• 06/06/2023: Annex to the implementing Regulation for access to metering and consumption data C(2023)3477
• 20/12/2022: Commission welcomes cooperation between ENTSO-E and EU DSO Entity on the digital electricity grid twin 
• 18/10/2022: EU action plan on digitalising the energy system Press release, Questions and Answers, Factsheet
• 16/12/2021: The digital transformation of our energy system –  available in EN, FR, DE, ES, IT and PL
• Study: Assessment of the energy footprint of digital actions and services (June 2023)
• Digitalising the energy system - EU action plan (COM/2022/552/2) | Staff Working Document (SWD/2022/341)
• Report: Leveraging digital technology to facilitate voluntary energy reductions (17/3/2023)
• Research & innovation to support the digitalisation of the energy system  (October 2022)
• Study: Digitalisation of energy flexibility (March 2022)
• Digitalisation in urban energy systems Outlook 2025, 2030 and 2040 (May 2022)
• EU initiatives for smart energy systems
• Europe’s Digital Decade: digital targets for 2030