Assessment and roadmap for the digital transformation of the energy sector towards an innovative internal market

Thanks to the European Union’s policy pressure, the EU energy system is going through increasing decentralisation and decarbonisation processes. Digitalisation, in this context, is a key enabler, as it unlocks opportunities for actors across the value chain (i.e. consumers, prosumers, retailers, traders, producers, network operators), providing them with new solutions. At the moment, digital technologies are already playing an important role in the energy sector. Internet of Things, Artificial Intelligence, Big Data, Cloud, 5G and Blockchain technologies are influencing changes both in energy companies’ value creation strategies and in customer behaviour. They are expected to have an impact on longtime established roles, particularly by creating trust and empowering consumers. In addition to this, digital technologies also provide the opportunity to integrate more renewable energy into grids and use energy more efficiently in households, industry and the whole system. They thus contribute to the creation of favourable conditions for tackling the sustainable low carbon economy challenge. To support policy making, this study assesses in which way and to what extent are digital solutions affecting the energy transition. It does this firstly by analysing ten specific use cases which provide, altogether, a good coverage of what is happening in representative segments of the energy value chain; and secondly, thanks to such a comprehensive view, by proposing a Roadmap for future EU and MS actions aimed at removing existing barriers to the digital transformation and its opportunities unlocking potential. Such a Roadmap presents a list of short-term actions able to remove those barriers and accelerate the implementation of the most relevant provisions of the Clean Energy Package. At the same time, looking forward, the recommended policy measures at EU and MS level are consistent with two of the six priorities of the new Commission, namely the “European Green Deal” and “Europe fit for the Digital Age”, confirming the continuity of the EC’s action in support of the energy transition.